Chevron to buy new US acreage in Marcellus Shale
Chevron has agreed to buy 228,000 net leasehold acres in the Marcellus Shale from Chief Oil & Gas and Tug Hill Inc., expanding its position in the rapidly growing US shale play.
Terms of the transaction, which is expected to close before the end of the second quarter, were not disclosed.
George Kirkland, vice chairman for Chevron, said: "This opportunity is aligned with our strategy to acquire early-in-life assets with long-term organic growth potential. Over the last year, Chevron has acquired nearly 5mn net acres of shale gas assets in the US, Canada, Poland and Romania."
"This expansion of our shale gas portfolio gives us additional high-quality resources with strong growth potential, as well as proximity to and synergy with existing operations," said Gary Luquette, president of Chevron’s North America exploration and production division.
The acreage, which is principally located in southern Pennsylvania, will give Chevron an estimated 5 trillion cubic feet of additional natural gas resource in its Marcellus Shale operations.
Comments