Mitsui joins Anadarko's Marcellus effort
Mitsui E&P USA LLC will earn a 32.5% interest in 100,000 net acres held by Anadarko Petroleum Corp. in the Marcellus shale gas play in north-central Pennsylvania for $1.4 billion.
By OGJ editors
HOUSTON, Feb. 16 -- Mitsui E&P USA LLC will earn a 32.5% interest in 100,000 net acres held by Anadarko Petroleum Corp. in the Marcellus shale gas play in north-central Pennsylvania for $1.4 billion.
Mitsui will earn the interest by funding all of Anadarko’s share of development costs in 2010 and 90% of costs after that, completing its funding obligation by about 2013. The agreement, subject to regulatory approvals, is to close on Mar. 15 and is effective Jan. 1.
Mitsui will also have the option to buy 32.5% of Anadarko’s existing wells and additional acreage acquisitions by reimbursing a proportionate share of Anadarko’s prior expenditures, currently estimated at $100 million.
Anadarko said its fairway position in the Marcellus has a gross unrisked resource potential of more than 30 tcf and spans more than 715,000 gross acres. The companies said more than 4,500 wells are likely to be drilled within 10 years.
Mitsui projected net peak production at 360-460 MMcfd, $3-4 billion in project costs, and a 60-year production life.
Anadarko’s acreage extends from Bradford and Sullivan counties on the northeast across Tioga, Lycoming, Potter, Clinton, Centre, and Clearfield counties to the southwest.