Shell to Buy East Resources for Shale Gas Play

Shell will buy East Resources for $4.7bn as it continues to build its portfolio in the North American gas market.

East Resources has 650,000 acres in the Marcellus field and 1.05 million acres overall.

The firm also has 10,000 barrels oil equivalent per day of natural gas production with substantial medium-term growth potential.

“These acreage additions form part of an ongoing strategy, which includes divestments, with an objective to grow and upgrade the quality of Shell’s North America tight gas portfolio,” Shell CEO Peter Voser said.

Shell has also acquired undeveloped acreage positions in the Eagle Ford play in 2010.