Statoil Pays $590 Million to Expand in Marcellus Shale Area
By Mikael Holter
December 19, 2012 10:49 AM EST
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Statoil ASA (STL), Norway’s biggest oil and gas producer, bought 70,000 acres in the Marcellus area in the U.S. to boost oil production amid falling gas prices there.
The assets, which are currently producing at about 5,000 barrels of oil equivalent a day, have a so-called risked resource base, a measure of reserves, of 300 million to 500 million barrels of oil equivalent, the Stavanger-based group said in a statement today. The acreage in Ohio and West Virginia has been bought from Grenadier Energy Partners LLC, Protege Energy II LLC and PetroEdge Resources II LLC, spokesman Baard Glad Pedersen said by phone.
“A majority of the net acres in this transaction are located in the liquid-rich part of the Marcellus,” Statoil said. “The market for these products is substantially better- paying than the current market for dry gas in the U.S.”