EQT to Buy Chesapeake Marcellus Assets for $113M
PITTSBURGH -- EQT Corp. has signed a definitive agreement to purchase roughly 99,000 acres in southwestern Pennsylvania and 10 wells for approximately $113 million from Chesapeake Energy Corp., the company announced Friday.
The deal calls for EQT to pay $53 million for horizontal wells in Washington County, Pa., and $60 million for acreage spanning the Marcellus and Utica shale gas plays.
Three of the 10 wells are producing in the Marcellus, EQT reported, and the remaining seven will be put into production by the end of the year, adding about 1 billion cubic feet of sales volume.
EQT anticipates acquiring 67,000 acres in the Marcellus, and another 32,000 acres in the dry gas window of the Utica.
About 25,000 acres are within EQT's core Marcellus development areas of Washington, Greene and Allegheny counties, the company said. The remaining 42,000 Marcellus acres are unlikely to be developed due to near-term lease expirations or a scattered footprint.
EQT expects to drill four wells on the new acreage in late 2013. The transaction is expected to close May 30.
Published by The Business Journal, Youngstown, Ohio.
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