Southwestern Energy Announces Acquisition of Marcellus Shale Properties
HOUSTON, April 29, 2013 /PRNewswire/ — Southwestern Energy Company (NYSE: SWN) today announced that it has signed a definitive purchase agreement to acquire natural gas properties located in Pennsylvania prospective for the Marcellus Shale from Chesapeake Energy Corporation (NYSE: CHK) and its partners for approximately $93 million, subject to closing conditions. Upon closing, Southwestern intends to use its revolving credit facility to finance the acquisition. The company anticipates the acquisition to close on or around May 15, 2013.
“2013 is already proving to be an exciting year for Southwestern Energy,” stated Steve Mueller, President and Chief Executive Officer of Southwestern Energy. “This acquisition of approximately 162,000 net acres is near our existing position and provides Southwestern with even greater exposure to a world-class resource where we can further showcase our operational strengths. The key acreage is located in Susquehanna, Wyoming, Tioga and Sullivan counties. Current net production from these properties is approximately 2 MMcf per day from 17 gross wells (1.2 net wells). Upon closing of this transaction, our acreage position of approximately 337,000 net acres in the Marcellus strengthens our ability to provide future double-digit production and reserve growth.”
A table and map of the company’s approximate post-closing acreage position in Pennsylvania are shown below:
County SWN Net Acres Net Acres Acquired SWN Total Prior to Net Acres Acquisition --- ----------- Bradford 21,000 -- 21,000 Columbia -- 500 500 Lackawanna 24,700 14,000 38,700 Luzerne -- 3,000 3,000 Lycoming 21,000 -- 21,000 Sullivan -- 25,500 25,500 Susquehanna 81,600 51,000 132,600 Tioga -- 15,000 15,000 Wayne 20,000 -- 20,000 Wyoming 7,000 53,000 60,000 ----- ------ ------ Total 175,300 162,000 337,300 ======= ======= =======
Southwestern Energy Company is an independent energy company whose wholly-owned subsidiaries are engaged in oil and gas exploration and production, natural gas gathering and marketing. Additional information on the company can be found on the Internet at http://www.swn.com.
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SOURCE Southwestern Energy Company