Rice Energy is purchasing about 12 developed Marcellus shale wells in western Green County, Pennsylvania, which borders West Virginia, the company announced July 7.
In the $336 million transaction, Rice will acquire about 22,000 net acres of land from Chesapeake Appalachia, a West Virginia limited liability corporation and a subsidiary of Chesapeake Energy Corporation, the nation’s second largest natural gas producer.
The transaction is expected to close in August of this year.
"This transaction is consistent with our strategy of acquiring high-quality shale assets. We are adding a significant number of drilling locations within an area we have been successfully developing since 2009,” Toby Rice, Rice Energy president and chief operating officer, said in a statement. “The acquired assets provide us with a foothold to pursue additional leasehold opportunities and further grow our inventory of low-risk, high-return projects."
Rice, based in Canonsburg, Pennsylvania, holds approximately 89,500 net acres in Appalachia, prospective for the Marcellus Shale and the Upper Devonian Shale in Pennsylvania and the Utica Shale in Ohio.
Chesapeake Appalachia has oil and natural gas properties in West Virginia, Pennsylvania and Ohio.