EQT buys Marcellus shale assets from Statoil

Norwegian energy giant Statoil said it has agreed to divest its operated Marcellus properties in the US state of West Virginia to EQT Corporation for US$407 million.

EQT will acquire 62,500 net acres, and current natural gas production of 50 MMcfe per day from Statoil USA Onshore Properties, a unit of Statoil. The transaction is expected to close on or about July 8, 2016.

Primarily located in Wetzel, Tyler, and Harrison Counties of West Virginia, the acquisition adds a “sizeable amount of acreage” within EQT’s core development area and complements the company’s adjacent operations in Wetzel County, EQT said in a statement on Monday.

The 62,500 acre acquisition includes existing Marcellus production and approximately 500 undeveloped locations that are expected to have an average lateral length of 5,600 feet.

According to EQT, this acquisition increases the company’s core undeveloped Marcellus acreage by 29%. The acquisition also includes drilling rights on an estimated 53,000 net acres that are undeveloped and prospective for the deep Utica.

Assets include 31 Marcellus wells, 24 of which are currently producing – three complete, not online and four drilled, not complete. The resource potential of the acreage is estimated at 9.2 Tcf; and 87% of the acreage is either held by production or has lease expiration terms that extend beyond 2018, EQT said.