By OGJ editors
HOUSTON, June 10 -- Oklahoma City-based Quest Resources Corp. plans to buy private PetroEdge Resources LLC for $140 million, closing by mid-July.
PetroEdge owns 78,000 net acres of gas and oil producing properties in West Virginia, Pennsylvania, and New York. The properties, 100% operated and 99% gas, produce 3.3 MMcfd of gas equivalent from 99.6 bcf of gas equivalent of proved reserves.
Some 67,000 acres are in the Devonian Marcellus shale play fairway, including 41,000 net acres in Ritchie, Wetzel, and Lewis counties, WVa., 22,000 net acres in Lycoming County, Pa., and 3,000 net acres in Steuben County, NY. The acquisition will bring Quest's Marcellus play holding to 119,000 net acres.
PetroEdge had drilled and completed 112 wells on its properties since the end of 2004, all of which were productive. The properties have 700 potential drilling locations assuming vertical development on 80-acre spacing.
The first two horizontal Marcellus wells are drilling in Wetzel County, and drilling is to start in Lycoming County by yearend.
