Royal Dutch Shell PLC has completed a previously reported deal in which it acquires 155,000 net acres in the Marcellus and Utica areas of Pennsylvania and receives a cash payment of $925 million from Ultra Petroleum Corp., Houston, in exchange for Shell’s 19,000 net acres of leasehold interest in the Pinedale of Wyoming, including associated gathering and processing contracts (OGJ Online, Aug. 14, 2014).
Shell receives 63,000 net acres in the Marshlands area as well as 92,000 net acres in the Tioga area of mutual interest (AMI), an unincorporated joint venture with Ultra, giving Shell 100% interest in Tioga AMI. Ultra’s first-half net production from the Marcellus and Utica assets averaged 109 MMscfd.
The assets received by Ultra encompass 1,108 gross wells and associated facilities, and an average of 0.7% overriding royalty interest in 11,500 acres. Shell’s second-quarter net production from Pinedale totaled 190 MMscfd of dry gas.