Carbon Natural Gas Buys 780K Acres, 3,100 Mi. of WV Pipe for $41M

Carbon Natural Gas Company, through its affiliate Carbon Appalachian Company, announced earlier this week that the company has purchased another 780,000 acres of conventional (non-shale) leases, along with 3,100 miles of gathering pipelines located “predominantly” in West Virginia–for $41.3 million. You may recall Carbon Natural Gas picked up all of Cabot Oil & Gas’ conventional assets in WV for $21.5 million back in August (see Carbon Natural Gas Buys Cabot’s Conventional Wells in WV-OH-VA). Once again Carbon does not name the seller for this latest round (they also did not with the Cabot deal, MDN pieced that information together). This time we don’t have any evidence or clues to tell you who did the selling. One thing is clear: Now with a total of 1.7 million acres of leases, 7,900 operating conventional wells and 4,700 miles of pipelines, Carbon Natural Gas is locking down much (most?) of the conventional gas business in the Mountain State…

Oct 7, 2017 Update: An MDN source tells us the seller was EXCO Resources. We have not been able to independently verify the tip, but our source is reliable and we wanted to pass along the tip.
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Sale of Cabot’s WV-OH-VA Assets to Carbon NG Closing Sept 29

Exactly one week ago MDN brought you the exclusive news of WHO is selling a bunch of conventional wells and leases (and pipelines) located in West Virginia, Ohio and Virginia to Carbon Natural Resources (see Carbon Natural Gas Buys Cabot’s Conventional Wells in WV-OH-VA). MDN was the only news source to identify Cabot Oil & Gas as the seller. The press release from Carbon Natural refused to identify the seller. Another news source has finally stepped forward to confirm what you read here a week ago. Argus Media has done some of their own sleuthing and found via pipeline filings with the Federal Energy Regulatory Commission, that indeed Cabot is the seller. Argus also includes some facts not in the original release–that the sale includes 780,000 acres of leases. Yikes! That’s more than 3/4 of a million acres! But just a reminder–it’s conventional (not shale) acreage. At least as far as we can tell. Finally, another new tidbit from Argus: the deal is expected to close on September 29th…
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Carbon Natural Gas Buys Cabot’s Conventional Wells in WV-OH-VA

Carbon Natural Gas Company, through its affiliate Carbon Appalachian Company, teased in a press release issued yesterday that the company has just completed the acquisition of “natural gas producing properties and related facilities” located “predominantly in the State of West Virginia” for $21.5 million. The release does not identify the seller–but MDN believes we know who it is: Cabot Oil & Gas. We supply our evidence below. Carbon Natural Gas is an independent oil and gas exploration and production company (i.e. “driller”) that owns, operates and develops oil and gas properties in the Appalachian, Illinois and Ventura Basin areas of the U.S. Most of the wells they own and operate are conventional. However, in April the company began dipping its toe into unconventional shale as well (see Carbon Natural Gas Targets Chattanooga Shale in TN). The April announcement said the company had formed a subsidiary called Carbon Appalachian Company, with backing from two unnamed institutional investors. The new venture has access to a whopping $100 million to get them going, with $20 million of that going to the purchase of “natural gas producing properties and related facilities” located in Tennessee. It is the shale-focused subsidiary Carbon Appalachian that closed on this new $21.5 million transaction of gas wells and a pipeline system located mostly in WV. So are the assets they just bought shale-related?…
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Carbon Natural Gas Targets Chattanooga Shale in TN

Carbon Natural Gas Company, an independent oil and gas exploration and production company, owns, operates and develops oil and gas properties in the Appalachian, Illinois and Ventura Basin areas of the U.S. Most of the wells they own and operate are conventional. However, the company is dipping its toe into unconventional shale as well. Yesterday Carbon issued a press release to announce they have formed a subsidiary called Carbon Appalachian Company, with backing from two unnamed institutional investors. The new venture has access to a whopping $100 million to get them going, with $20 million of that going to the purchase of “natural gas producing properties and related facilities” located in Tennessee. Currently the existing wells just purchased by Carbon in TN produce a measly 3.6 million cubic feet per day (Mcf/d) of mostly natural gas. You paid $20M for that?! Aaahh, there’s more to the story. The acreage that comes with the wells is located in the Chattanooga Shale–a shale layer much shallower than the Marcellus or Utica. Carbon plans to drill horizontal wells in the Chattanooga. Which got us to thinking: How active is the Chattanooga? Who else is drilling there? Is there shale drilling in TN? We found some answers…
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