Pittsburgh-based integrated energy player EQT Corporation has agreed to buy Marcellus acreage and ten wells in Pennsylvania from Chesapeake Energy for around $113 million.
The companies said the deal included 99,000 net acres in southwestern Pennsylvania for $60 million and ten horizontal Marcellus wells in Washington County for $53 million.
Three of the wells are producing, and the other seven will be put on line by the end of the year, adding around 1 billion cubic feet of equivalent in sales volumes, EQT Corporation said.
The Pittsburgh producer said that about 25,000 acres of the land lay within its core Marcellus development areas of Washington, Greene, and Allegheny counties.
“This core acreage is conducive to development through the company's preferred use of multi-well pad drilling and extended laterals,” EQT Corporation said.
At the same time the copmany admitted that “the remaining 42,000 Marcellus acres are unlikely to be developed due to near-term lease expirations or a scattered footprint”.
The deal is expected to close at the end of the month.
New York-listed EQT Corporation specialises in Appalachian-area natural gas production, gathering, transmission, and distribution.
Oklahoma City-based Chesapeake Energy has racked up almost $2.5 billion in asset sell-offs so far this year when Friday's deal is included, as part of its ongoing efforts to repay debts and move away from dry gas operations.