PDCM to acquire Seneca-Upshur assets

PDC Mountaineer (PDCM) has executed a definitive agreement to acquire the interests of Seneca-Upshur for $152.5m.

PDCM is a joint venture between Petroleum Development Corporation and Lime Rock Partners.

Under the agreement, PDCM will acquire an estimated 364km² net area in Marcellus Shale, primarily in the Harrison, Taylor, Barbour, Upshur, Lewis and Randolph counties of West Virginia.

An additional 10,000 net acres are located in the Mingo and McDowell counties, which are prospective for Huron Shale.

The assets have estimated producing reserves of 30 billion cubic feet equivalent and currently produce 5.4 million cubic feet per day net to PDCM from the shallow Devonian formation.

PDCM will begin development of the Marcellus Shale on the acquired lands in 2012.