Rice Acquires Marcellus Assets from Chesapeake
Rice Energy announced Monday that it has signed a definitive purchase and sale agreement to acquire approximately 22,000 net acres and 12 developed Marcellus wells in western Greene County, Pennsylvania, from Chesapeake Appalachia, LLC and its partners for approximately $336 million. We expect to close the transaction in August 2014, subject to customary closing conditions, with an effective date of February 1, 2014.
Approximately 22,000 net acres (100% operated, average 95% working interest), representing a 24% increase in our net acreage position as of March 31, 2014
Approximately 152 net risked locations, representing a 47% increase to our Marcellus inventory of 325 net risked locations as of March 31, 2014
Current net production of approximately 20 MMcf/d from 7 wells, plus 5 additional wells in various stages of development
Toby Rice, President and Chief Operating Officer, commented, "This transaction is consistent with our strategy of acquiring high-quality shale assets. We are adding a significant number of drilling locations within an area we have been successfully developing since 2009. The acquired assets provide us with a foothold to pursue additional leasehold opportunities and further grow our inventory of low-risk, high-return projects."
Acquisition Financing and Leasehold Update
Rice intends to fund the acquisition through a combination of cash on hand, borrowings under our revolving credit facility and are evaluating the equity capital markets. The company is still on track to achieve our goal of organically adding 30,000 net leasehold acres this year.
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