Newfield, EOG terminate Marcellus shale transaction

Dec. 27, 2010
Newfield Exploration Co. and EOG Resources Inc. mutually agreed to terminate a deal for Newfield to buy Marcellus shale development assets in Bradford County, Pa., from EOG for $405 million.

By OGJ editors
HOUSTON, Dec. 27
-- Newfield Exploration Co. and EOG Resources Inc. mutually agreed to terminate a deal for Newfield to buy Marcellus shale development assets in Bradford County, Pa., from EOG for $405 million.

The original sales agreement was announced last month, and the termination announcement came Dec. 22 (OGJ, Nov. 22, 2010, Newsletter).

Newfield formerly had planned to acquire 50,000 net acres estimated to contain 1.5-2 tcf of gas equivalent net unrisked recovery potential. The companies did not elaborate on what prompted them to call off the transaction.