WPX Energy has agreed to sell its oil and gas assets including around 46,700 net acres in northeast Pennsylvania, US, to Southwestern Energy for about $300m.
The sale includes about 50 million cubic feet per day of net natural gas production and 63 operated horizontal wells that are primarily located in Susquehanna County.
As part of the transaction, Southwestern will assume firm transportation capacity of 260 million cubic feet of gas per day mostly on the Millennium pipeline.
The transaction, which is subject to regulatory approval, is expected to be completed during the first quarter of 2015.
WPX is also planning to sell its remaining assets in the Marcellus Shale, which include its physical operations in Westmoreland County in southwestern Pennsylvania and further firm transport capacity on Transco’s Northeast Supply Link line.
WPX president and chief executive officer Rick Muncrief said: "We’re heading into 2015 reshaped, refocused and ready to grow margins, develop our highest returning assets and build the long-term value of the company."
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By GlobalDataSouthwestern Energy president and chief executive officer Steve Mueller said: "This acreage position complements our existing Marcellus acreage in northern Susquehanna County where we have recently seen very good results from two of our wells, the Hughes North 1H and the Dayton 4H.
"Further, the additional firm transportation capacity adds to our existing firm transportation portfolio to provide 1.3 Bcf per day of firm transport capacity upon closing and growing to 1.4 Bcf per day by the end of 2016."
Image: A rig drills for natural gas in Pennsylvania’s Marcellus Shale. Photo: Courtesy of Edward DeCroce.
