EQT Corp (EQT) said that it is purchasing 58,000 net acres of leasehold in the Marcellus Shale. The acreage is located in Pennsylvania in Cameron, Clearfield, Elk and Jefferson counties.
EQT Corp is paying $280 million, with $128 million in cash and the balance in stock. The company now has 500,000 acres under lease in the Marcellus Shale.
The Pennsylvania Department of Conservation and Natural Resources announced the results of a Marcellus Shale lease sale of six tracts on 31,947 acres of forestland in north central Pennsylvania. The leases are located in the counties of Tioga, Potter, Cameron, Clearfield and Clinton.
Tract 001 – 7,441 acres - Seneca Resources - $23.2 million - $3,125 per acre.
Tract 007 – 10,493 acres - Seneca Resources - $48.5 million - $4,625 per acre.
Tract 323 – 4,639 acres - EXCO Resources (XCO) - $24.3 million - $5,250 per acre.
Tract 416 – 3,698 acres - Penn Virginia (PVA) - $13.8 million - $3,750 per acre.
Tract 419 – 2,952 acres - Chesapeake Energy (CHK) - $7.2 million - $2,437 per acre.
Tract 737 - 2,724 acres - Anadarko Petroleum (APC) - $11.2 million – $4,111 per acre.
(National Fuel Gas (NFG) owns Seneca Resources)
There were some interesting items in the lease bidding. The major integrated oil companies were noticeably absent from the bidding. Exxon Mobil (XOM) submitted bids for Tract 1 and 416, but lost both. Conoco Phillips (COP) made no bids and Chevron (CVX) didn’t even bother to get qualified for the lease sale.
Another interesting fact was that much of the land leased was previously held by other energy companies, but those leases all expired for various reasons. Tract 1 was originally leased to Chevron, but the leases were surrendered in 1987.
Cabot Oil and Gas originally held the lease to most of Tract 7 but these leases were also surrendered in the late 1980’s.
Rex Energy has 87,000 gross acres (65,000 net) in the Marcellus Shale area in the Northeastern U.S. The break down of the Marcellus Shale acreage by county is:
Westmoreland County – 17,200 acres
Butler County – 11,500 acres
Clearfield and Centre County – 27,800 acres
Fayette County – 4,150 acres.
The characteristics of the Marcellus shale in each county in terms of depth and thickness is:
Westmoreland County – 8,000 feet deep and 135-165 feet thick.
Butler County – 5,000 feet deep and 75 feet thick
Clearfield and Centre County – 8,800 feet deep and 150-300 feet thick.
Fayette County – 7,500 feet deep and 125-135 feet thick.