Statoil Buys Into Marcellus

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
$590.0MM
Description

Purchase of 70,000 net acres in liquids-rich portion of Marcellus

Statoil ASA has purchased 70,000 operated net acres in the liquids-rich portion of the Marcellus from an unidentified seller for $590 million.

"The US unconventional plays hold a substantial resource base and represent an increasingly important part of future energy supplies. Statoil is further strengthening its U.S. onshore portfolio by acquiring additional acreage in the valuable liquid rich parts of the Marcellus shale in Ohio and West Virginia," said Statoil U.S. onshore senior vice president Torstein Hole.

Statoil entered the Marcellus in 2008 through a partnership with Chesapeake Energy Corp. (NYSE: CHK). Since then the company has pursued a targeted and stepwise growth strategy to expand its onshore holdings and develop operational and organizational capacity.

In 2010, Statoil acquired acreage in the liquids-rich Eagle Ford Shale in Texas and in 2011 the company took over ownership and operatorship for leases in the Bakken and Three Forks formations in North Dakota and Montana through the acquisition of Brigham Exploration Ltd.

In 2013, Statoil will become operator for 50% of the Eagle Ford acreage, in line with the agreement with Talisman Energy Inc. from 2010.

"Statoil was an early entrant into shale and has over time built a diversified portfolio in some of the most attractive oil, gas and liquid-rich areas. We are already operator in Bakken, we are on schedule to become operator in Eagle Ford next year and with this transaction Statoil will become operator also in Marcellus. We will then be operator in all of our significant U.S. shale plays," said Hole.

A majority of the net acres in this transaction are located in the liquid-rich part of the Marcellus. The market for these products is substantially better paying than the current market for dry gas in the US. At this early stage of development the risked resource base is estimated at 300-500 million barrels of oil equivalent (BOE). Current equity production is approximately 5,000 BOE per day.

To help ensuring a safe and efficient transfer of operatorship, the sellers will over a period of time provide transition operating services. The transaction closed Dec. 18 with an effective date of Sept. 1.