Statoil Expands in the Marcellus, Becomes Operator

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Statoil recently announced the acquisition of 70,000 net acres in the liquids-rich area of the Marcellus Shale in Ohio and West Virginia.  The total price of the deal was $590 million.  Statoil entered the Marcellus back in 2008 through a partnership with Chesapeake.  However, this recent purchase entitles the Norwegian E&P company operatorship in the play.  According to a company press release, it has been Statoil’s growth strategy to expand their Marcellus holdings as well as develop operational and organizational capacity.  This is also evident in other prolific shale plays in the U.S.  This year Statoil will become operator of 50% of the Eagle Ford acreage acquired through the agreement with Talisman Energy in 2010.  Through the acquisition of Brigham Exploration in 2011, Statoil became sole owner/operator in the Bakken/Three Forks plays of North Dakota and Montana.  According to Torstein Hole, senior VP for U.S. onshore, the recent Marcellus transaction means Statoil is now an operator in all of their significant U.S. shale plays.  This is an important milestone for the company.

The risked resource base is estimated to be between 300 to 500 MMBOE and current equity production is about 5 MBOED.  The companies that sold assets to Statoil were Grenadier Energy Partners LLC, PetroEdge Energy LLC, and Protégé Energy LLC.  Using Drillinginfo, I just want to get a look at the well production trends in this area of the Marcellus.  Range Resources is probably the most active Marcellus operator in this area and has roughly defined the dry, wet gas, and super-rich gas windows that I have shown on the map below.

 

Range Resources provides some pricing metrics in a recent corporate presentation.  This is simply to show some of the economic attractiveness condensate and NGLs provide to a gassy play like the Marcellus.

Statoil Expands in the Marcellus, Becomes Operator

Source: Range Resources December 2012 Presentation

For more information on Marcellus Shale activity feel free to check out the Marcellus folder in Drillinginfo’s DNA repository.

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Matt Menchaca

Matthew Menchaca is a Research Analyst at Drillinginfo. He is a key member of the Data Management Department and the DI Analytics group. He performs industry research, tracks play development and provides various types of analysis on unconventional resource plays in the U.S. Matthew graduated from the University of Texas at Austin in 2010 after studying Geography and Geological Sciences.