Ultra Petroleum Corp. (NYSE: UPL) announced Sept. 25 the closing of the $925 million acquisition of Pinedale Field properties from SWEPI LP, an affiliate of Royal Dutch Shell Plc (NYSE: RDS-A, RDS-B).
Houston's Ultra bought Shell's interest in the Pinedale Field, which is producing about 189 million cubic feet equivalent per day (MMcfe/d) of natural gas and condensate. As a result of the transaction, Ultra will operate roughly 1,577 gross wells, or about 68% of the Pinedale Field. The company said its access to higher-priced western gas markets will greatly increase as a result.
In exchange, Shell will receive cash and 155,000 net acres in the Marcellus Shale, primarily located in Tioga and Potter counties, Pa., from Ultra. Shell will obtain about 100 MMcfe/d of natural gas production.
"This transaction is a strategic repositioning of our portfolio generating improved returns, increased reserves, higher value markets, increased operatorship and increased control of capital allocation," said Michael D. Watford , Ultra's chairman, president and CEO, in a statement.
Recommended Reading
New Permian Math: Vital Energy and 42 Horseshoe Wells
2024-05-10 - Vital Energy anticipates making 42 double-long, horseshoe-shaped wells where straight lines would have made 84 wells. The estimated savings: $140 million.
SM Energy Targets Prolific Dean in New Northern Midland Play
2024-05-09 - KeyBanc Capital Markets reports SM Energy’s wells “measure up well to anything being drilled in the Midland Basin by anybody today.”
Vår Selling Norne Assets to DNO
2024-05-08 - In exchange for Vår’s producing assets in the Norwegian Sea, DNO is paying $51 million and transferring to Vår its 22.6% interest in the Ringhorne East unit in the North Sea.
Crescent Energy: Bigger Uinta Frac Now Making 60% More Boe
2024-05-10 - Crescent Energy also reported companywide growth in D&C speeds, while well costs have declined 10%.
SLB OneSubsea JV to Kickstart North Sea Development
2024-05-07 - SLB OneSubsea, a joint venture including SLB and Subsea7, have been awarded a contract by OKEA that will develop the Bestla Project offshore Norway.