Statoil sells non-core operated assets in West Virginia, US, for $407m

Statoil has completed the previously announced sale of its non-core operated assets in West Virginia, US, to petroleum and natural gas company EQT in a transaction valued at $407m.

As part of the transaction announced in May this year, EQT has acquired 62,500 net acres, and current natural gas production of 50MMcfe per day from Statoil USA Onshore Properties.

Following the deal, Statoil will retain its operated properties in Ohio, as well as its non-operated Marcellus positions.

The acquired assets are 31 Marcellus wells, 24 of which are currently producing drilling rights on an estimated 53,000 net acres that are undeveloped and prospective for the deep Utica.

EQT previously said that the acquisition will add a sizeable amount of acreage within the company’s core development area.

Furthermore, the acquisition will also complement the company’s adjacent operations in Wetzel County.

The transaction covers about 62,500 net acres, including existing Marcellus production and about 500 undeveloped locations.

The lateral length of 106 existing EQT locations can be extended from the existing 3,000ft to 6,500ft, which will reduce overall costs.

In line with the EQT’s consolidation strategy, the acquisition will increase the company’s core undeveloped Marcellus acreage by 29%.

Equity production from the properties during first quarter of this year stood at about 9,300 barrel of oil equivalent (boe) per day, Statoil said.

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Image: Statoil will retain its operated properties in Ohio, as well as its non-operated Marcellus positions. Photo: © Statoil.