Newfield Exploration Company (NFX) reported the acquisition of leasehold acreage in the Appalachian Basin that is prospective for the Marcellus Shale.
Newfield Exploration Company is purchasing 50,000 net acres of leasehold from EOG Resources (EOG) for $405 million. The acreage is located mostly in the Bradford County, Pennsylvania.
Newfield Exploration Company said that the acreage being purchased has production of 7 million cubic feet per day of natural gas from five producing wells. The company said that there are eleven wells waiting on completion, and Newfield Exploration Company plans to drill two additional wells in 2010.
Newfield Exploration Company estimates that there are 400 gross well locations on the acreage and a net unrisked reserve potential from 1.5 to 2 trillion cubic feet equivalent. The company will spend $100 million in 2011 to convert its newly acquired acreage to held by production.