Denham Capital Sells Stakes in Marcellus Shale
Denham Capital has sold its participation in the Marcellus shale through transfer of approximately 42,000 net acres acquired in partnership with Alta Resources and other investors. Williams acquired the acreage for $501 million, estimated to represent approximately 1.2 trillion cubic feet equivalent (Tcfe) in total net natural gas reserves potential.
In February 2009, Denham and Alta entered into a partnership wherein Denham provided additional capital for Alta to purchase natural gas leases from landowners primarily located in Susquehanna County in northeastern Pennsylvania. The partnership enabled Alta to expand its extensive lease position and commence drilling and operations.
"This partnership was Denham's first foray into the Marcellus," said Carl Tricoli, managing partner of Denham Capital. "Through Alta, we partnered with a proven leader in shale development to take advantage of the basin's cost-competitive production and proximity to key gas markets."