EQT to acquire Statoil’s operated properties in US for $407m

US-based petroleum and natural gas company EQT has agreed to acquire Statoil’s operated properties in West Virginia, US, for $407m.

Under the agreement, EQT will purchase 62,500 net acres and existing natural gas production of 50MMcfe per day, subject to customary closing conditions.

Equity production from the properties during the first quarter of 2016 was about 9,300 barrel of oil equivalent (boe) per day.

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

As much of the acreage is contiguous with EQT’s existing development area, the lateral length of 106 existing EQT locations can now be extended from 3,000 to 6,500ft.

The properties are primarily located in Wetzel, Tyler, and Harrison Counties of West Virginia and will add a sizeable amount of acreage within EQT’s core development area.

They also complement EQT’s adjacent operations in Wetzel County.

EQT said that the acquisition will increase core undeveloped Marcellus acreage by 29%. This will also include drilling rights on an estimated 53,000 net acres that are prospective for the deep Utica.

Assets include 31 Marcellus wells, 24 of which are producing at present.

Statoil said it will retain its operated properties in Ohio and its non-operated Marcellus positions.

The transaction is subject to certain conditions being met and is expected to be completed by July 2016.

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Image: The acquisition includes existing Marcellus production and about 500 undeveloped locations. Photo: © Statoil.