Noble in $3.4bn US shale gas tie-up

Exploitation push: Noble and Consol are teaming up in Marcellus shale

AP/Scanpix

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Steve Marshall

, Steve Marshall

 18 August 2011 12:30 GMT

Noble Energy has struck a $3.4 billion joint venture deal with Consol Energy to develop acreage in the US' booming Marcellus shale gas play.

Under the deal, Noble will acquire for $1.07 billion a 50% interest in 663,350 net undeveloped acres in south-west Pennsylvania and north-west West Virginia, as well as fund $2.13 billion of Consol’s future drilling and completion costs.

Noble will also acquire a 50% interest in 70 million cubic feet equivalent per day of existing Marcellus production and infrastructure for $219 million.

The acreage to be acquired is estimated to contain 7.4 trillion cubic feet equivalent of risked resources net to Noble's interest, of which 400 billion cubic feet equivalent were proven reserves at…

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