Statoil bails out of West Virginia, EQT rushes in
EQT appears to be paying $6,500 for lease hold rights. They need to learn to negotiate from Rice who are going to pay $7,500/acre for minerals, in fee, in a much better area.
EQT Corp. announced a $407 million deal on Monday to buy the rights to develop shale gas on some 62,500 acres in West Virginia.
The Downtown-based company, which alluded to a potential deal last week during a company earnings call, is buying the assets from Statoil USA Onshore Properties Inc. The deal includes land in Wetzel, Tyler, and Harrison counties and 31 Marcellus wells, of which 24 are currently pumping out 50 million cubic feet of natural gas daily.
Company leaders said there were a number of asset packages floating around in the market that might be attractive to EQT as it looks to strengthen its core operating area, which spans large parts of Allegheny, Washington, Westmoreland and Greene counties in southwestern Pennsylvania, and half a dozen counties in northern West Virginia.
“For the most part, we happen to be focused on transactions that are relatively small in nature,” EQT’s CEO Dave Porges told analysts last week.
The deals being looked at by the company allow it to capitalize on its current assets, he said.
The Statoil deal, for example, will allow EQT to more than double the size of the horizontal wells it had planned to drill from land it already controlled. The longer laterals will continue under its new holdings, the company said.
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Replies to This Discussion
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Permalink Reply by Paul Butler on
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Why is someone posting repeatedly, thereby removing older posts?
Is this an attempt to obscure information?
I smell a rat.
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Permalink Reply by 0ym9x5ag7ury2 on
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Paul,
I saw a few posts last week that appeared 5 to 10 times when I signed in. Later the same post was listed a few times then dropped to once.
I thought it was the person posting making a mistake, but it could have been a website issue that was corrected.
If someone doesn't like my posts, they simply disappear.
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Permalink Reply by Paul Butler on
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Some people worship oil companies,
Those people are angered when everybody doesn't buy into the cult of personality.
I think you should be respectful, when appropriate, but never worshipful.
It's the oil business. Come on.
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Has anyone heard any updated information as to when the actual transaction is to be effective.
Will there be a notification from EQT or Statoil ? I received my royalty check for June for my leases in Wetzel County - just wondering whom it will come from in July. Thanks
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I am in the same boat, Linda. I received my royalty check this month (June) from StatOil for Wetzel County and have not heard a word from either company about this buyout. Keep us posted if you hear something. Thanks.
John K
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I have not heard anything yet. Does anyone else have any updates? Let me know - Thanks Linda G
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Permalink Reply by DONNA M SELLERS on -
Not a word yet.
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