Statoil is going to sell some of its onshore interests to Antero Resources Corporation for a cash price nearing $96 million. The interests are non-operated and located in West Virginia and will mark the third sale in the southern Marcellus for the company over the past two years. This report comes after Antero’s own June 9, 2016 announcement of the attainment of Southwestern Energy’s interest in the same properties.
Roughly 11,500 acres of land are counted in the deal with an average working interest of 19 percent. The land, headed by Southwestern, is largely situated across the counties of Wetzel, Tyler, and Doddridge. According to Statoil’s statement, “The divestment increases Statoil’s financial flexibility and allows capital to be focused on core activities in order to maximize value creation.”
Torgrim Reitan is the executive vice president of Statoil’s Development and Production USA division. He said about the transaction, “The U.S. business is one of the focus areas in Statoil’s international strategy. We will continue actively to manage the portfolio, optimize field developments, and step up efficiency improvements and cost reduction measures.” The deal is estimated to reach a close by the third quarter of this year.
Previously, Statoil arranged to decrease its working interest in its non-operated southern Marcellus asset down to 23 percent from 29 percent. The $394 million deal with Southwestern Energy was executed back in December 2014.
In May 2016, Statoil sold off operated assets in West Virginia to EQT Corporation. The deal secured $407 million in cash for Statoil.
Article written by HEI contributor Briana Steptoe.