EQT Corp. announced that its subsidiary EQT Production Co. has signed a definitive agreement to acquire 62 500 net acres, and current natural gas production of 50 million ft3/d from Statoil USA Onshore Properties Inc. (Statoil) for $407 million, subject to customary closing conditions. The transaction is expected to close on or about 8 July 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, West Virginia. The 62 500 acre acquisition includes existing Marcellus production and approximately 500 undeveloped locations that are expected to have an average lateral length of 5600 ft. Much of this acreage is contiguous with EQT’s existing development area; therefore, the lateral length of 106 existing EQT locations can now be extended from 3000 to 6500 ft, which will reduce overall costs and deliver stronger well economics.
Baker Botts is representing EQT Corp. and EQT Production Co. in the transaction.
Edited from press release by Angharad Lock
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/10052016/baker-botts-acquires-statoils-marcellus-core-acreage-630/