An affiliate of BKV Oil & Gas Capital Partners LP, Denver, has entered an agreement to expand its leasehold in the Marcellus shale in Pennsylvania.
The Kalnin Ventures LLC fund will acquire the Northeast Marcellus holdings of Warren Resources Inc., Dallas, for $105 million and possibly two further payments of $3.75 million each, depending on gas prices.
The Wyoming County properties include 35 producing wells and a further 23 proved and undeveloped well locations in the lower Marcellus.
Proved reserves covered by the transaction are estimated at 292 bcf.
The deal will be the sixth acquisition in 30 months in the northeastern Marcellus shale for BKV, the sole investor in which is Banpu PCL, a coal mining and power-generation company based in Thailand (OGJ Online, Oct. 6, 2017).
At closing, BKV will operate more than 115 producing wells and have interests in 330 gross wells on more than 60,000 net acres.