EOG announced they are divesting $400MM of their Marcellus acreage to Newfield Exploration. This does not come as a surprise considering EOG has discussed divestiture of significant portions of their natural gas portfolio, expected proceeds will total about $1 billion. This is not all of the EOG Marcellus position, as the press release states they will retain 170,000 net acres farther out west.
If you’ll remember, Newfield Exploration has a 50/50, 70,000 gross acre JV with Hess in Wayne County. This JV is Newfield operated and has three exploratory wells drilled. The additional EOG acreage expands the Newfield position into Bradford County, it is 50,000 net acres.
The Newfield press release discloses the company will run two rigs, will divert CAPEX to the region from the gulf, and will drill to HBP in 2011 on the new acreage. They also estimate 400 gross operated well locations.
Below is a map of the Wayne County Newfield/Hess permits. There have been seven filed in 2010. Also, I have posted a map of the EOG Bradford County leases sold to Newfield, they are colored by expiration date. All but two or three of these leases have 60 month terms.
For more things Marcellus, visit the DNA Marcellus Unconventional Update, all that is required is a Drillinginfo login.
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