PITTSBURGH, Pa. — An energy company has made an agreement to acquire land in West Virginia to expand its natural gas exploration.
Pittsburgh-based EQT Corporation announced Monday it will purchase 62,500 net acres, primarily in Wetzel, Tyler and Harrison Counties, from Statoil USA Onshore Properties, Inc. for $407 million.
The acquisition increases EQT’s core undeveloped Marcellus acreage by 29%, while including drilling rights on an estimated 53,000 net acres that are undeveloped and prospective for the deep Utica.
The land in question “complements the Company’s adjacent operation in Wetzel County, West Virginia” and provides “500 undeveloped locations that are expected to have an average lateral length of 5,600 feet,” according to an EQT press release.
Another reason for the purchase, according to the company, is new land near 106 existing exploration properties will allow the average lateral length from 3,000 to 6,500 feet, “which will reduce overall costs and deliver stronger well economics.”
Assets also include 31 Marcellus wells, 24 of which are currently producing — three complete, not online and four drilled, not complete.
EQT will also acquire the 50 million cubic feet equivalent per day from Statoil USA, with the resource potential of the acreage estimated at 9.2 trillion cubic feet.
The company estimates the acreage has an 84% net revenue interest, with the transaction is expected to close on or about July 8.