Williams Companies (WMB) released an operational update on its activities in the Marcellus Shale. The company recently closed on an acquisition here and has 97,000 net acres under lease.
Williams Companies purchased 42,000 net acres in Susquehanna County, Pennsylvania, from Alta Resources LLC for $513 million. The company has acreage in a joint venture with Rex Energy (REXX), as well as its own properties, and is looking at another purchase of 8,000 net acres in Pennsylvania.
Williams Companies said that its average cost on the 97,000 acres is $7,000 per acre. The Marcellus Shale is growing in importance to the company and production from here will represent 6% of total volumes in 2011, and 12% of total volumes in 2012.