Southwestern Energy Buys 162,000 Acres From Chesapeake for $574/Acre

HOUSTON, April 29, 2013 /PRNewswire/ -- Southwestern Energy Company today announced that it has signed a definitive purchase agreement to acquire natural gas properties located in Pennsylvania prospective for the Marcellus Shale from Chesapeake Energy Corporation and its partners for approximately $93 million, subject to closing conditions. Upon closing, Southwestern intends to use its revolving credit facility to finance the acquisition. The company anticipates the acquisition to close on or around May 15, 2013.

"2013 is already proving to be an exciting year for Southwestern Energy," stated Steve Mueller, President and Chief Executive Officer of Southwestern Energy. "This acquisition of approximately 162,000 net acres is near our existing position and provides Southwestern with even greater exposure to a world-class resource where we can further showcase our operational strengths. The key acreage is located in Susquehanna, Wyoming, Tioga and Sullivan counties. Current net production from these properties is approximately 2 MMcf per day from 17 gross wells (1.2 net wells). Upon closing of this transaction, our acreage position of approximately 337,000 net acres in the Marcellus strengthens our ability to provide future double-digit production and reserve growth."

A table and map of the company's approximate post-closing acreage position in Pennsylvania are shown below:

County

SWN Net Acres
Prior to

Acquisition

Net Acres Acquired

SWN Total
Net Acres

Bradford

21,000

--

21,000

Columbia

--

500

500

Lackawanna

24,700

14,000

38,700

Luzerne

--

3,000

3,000

Lycoming

21,000

--

21,000

Sullivan

--

25,500

25,500

Susquehanna

81,600

51,000

132,600

Tioga

--

15,000

15,000

Wayne

20,000

--

20,000

Wyoming

7,000

53,000

60,000

Total

175,300

162,000

337,300

 

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Replies to This Discussion

Permalink Reply by mark ayers on April 29, 2013 at 2:39pm

The acreage in Lackawanna county was part of the Wyoming county land owers group  (39,000 total) that CHK leased in oct 2009, I dont know of any other leases by CHK in this county. Chk paid $5,750.00 and 20%, and did a JV with Statoil for about $4,500.00 an acre     ( one billion in cash and 2 billion in drilling cost.)

So it would seem things are pretty bad at CHK when they are selling at .10c on the dollar.

I'm thinking this is a good thing for us here. Only time will tell.

Permalink Reply by wyalusing jim on April 29, 2013 at 2:56pm

mark, was the lackawanna acreage ever assigned to statoil?

wj

Permalink Reply by mark ayers on April 29, 2013 at 3:39pm

Yes, I would guess sometime in 2010 we noticed it in the courthouse, I don't remember CHK actually notifying us. 

Permalink Reply by wyalusing jim on April 29, 2013 at 5:16pm

it wouldnt be like chk to have a fire sale on good acreage, but maybe things have changed since aubrey left.

statoil has to be pissed about this too, their share is gonna be peanuts.

i know that statoil has opted not to take some leases in bradford county that chk had signed.

wj

Permalink Reply by Susquehanna Sally on April 29, 2013 at 3:35pm

Hope you are correct.

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