Statoil Completes Sale of WV Marcellus Assets to EQT
In May MDN told you that EQT, a major Marcellus (and Utica) driller based in Pittsburgh, had cut a deal to purchase all of Norwegian Statoil’s Marcellus assets in West Virginia (see EQT Buying 62.5K “Core” WV Marcellus Acres from Statoil for $407M). The deal gives EQT another 62,500 net acres and 50 million cubic feet per day (50 Mcf/d) of natgas production for $407 million. The acreage is located in Wetzel, Tyler and Harrison counties in WV. The deal includes 31 Marcellus wells and ~500 drilling locations. It bumps up EQT’s available drilling locations by a big 29% and shows the company’s continued commitment to the mighty Marcellus Shale. Statoil reports the deal closed last Friday…
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On Friday MDN reported that Antero Resources has just cut a deal with Southwestern Energy to purchase 55,000 net acres located in Wetzel, Tyler and Doddridge Counties in West Virginia for $450 million (see 
Antero Resources announced yesterday that the company has just cut a deal with Southwestern Energy to purchase 55,000 net acres located in Wetzel, Tyler and Doddridge Counties in West Virginia for $450 million. Antero says the acreage is in the “core” of the Marcellus and some 75% of the acreage also includes Utica Shale rights. The acreage Southwestern is selling is acreage they themselves bought in 2014 from Chesapeake Energy. Chessy originally signed the acreage with landowners for $5 per acre (peanuts). Southwestern paid Chesapeake $12,000 per acre (see 
EQT, a major Marcellus (and Utica) driller based in Pittsburgh, announced yesterday it has cut a deal to purchase all of Norwegian Statoil’s Marcellus assets in West Virginia. The deal will give EQT another 62,500 net acres and 50 million cubic feet per day (50 Mcf/d) of natgas production for $407 million. The acreage is located in Wetzel, Tyler and Harrison counties in WV. The deal includes 31 Marcellus wells and ~500 drilling locations. It bumps up EQT’s available drilling locations by a big 29% and shows the company’s continued commitment to the mighty Marcellus Shale. How will they finance it? EQT released another announcement yesterday that says they are floating 10.5 million shares of new stock, hoping to get $67 per share for a total of $700 million for this deal and for “other potential acquisitions and for general corporate purposes.” Statoil is retaining ownership of its shale assets in Ohio and (for now) it’s non-operated Marcellus assets–i.e. joint venture deals where Statoil owns a portion of the lease but doesn’t do the drilling…
Details are just now coming to light of a new E&P (exploration and production, or drilling) company headquartered in Pittsburgh and focused totally on the Marcellus and Utica region. Until now the company has flown under our radar. The company is American Petroleum Partners (APP)–not to be confused with Aubrey McClendon’s American Energy Partners (AEP)–and is headed by Rice Energy alumnus Varun Mishra, who is the founder and CEO. The big news is that last September Mishra’s new company, founded in 2014, received a major injection of investment capital. Apollo Global Management invested $411 million in APP with the option to double it up to $800 million. MDN has it on very good authority that although APP quietly issued a press release about this last September (see it below), the company has intentionally kept the news quiet. Not any more! Big mouth MDN is blabbing it to the world. Below are the bits and pieces we’ve been able to put together about this newest Utica/Marcellus driller…
Very early Christmas Eve morning, at 2:45 am, six CSX rail cars loaded with liquefied petroleum gas (LPG, or propane) ran off the tracks in New Martinsville (Wetzel County), West Virginia. We don’t know if the LPG in those rail cars came from the Marcellus/Utica, but there’s a decent chance it did. Increasingly NGLs like propane are being shipped in the northeast by rail. The good news about the accident: no one was injured and the rail cars didn’t leak. The accident is being investigated by federal authorities for the cause…
