Ultra Petroleum Corp. (NYSE: UPL) announced Sept. 25 the closing of the $925 million acquisition of Pinedale Field properties from SWEPI LP, an affiliate of Royal Dutch Shell Plc (NYSE: RDS-A, RDS-B).
Houston's Ultra bought Shell's interest in the Pinedale Field, which is producing about 189 million cubic feet equivalent per day (MMcfe/d) of natural gas and condensate. As a result of the transaction, Ultra will operate roughly 1,577 gross wells, or about 68% of the Pinedale Field. The company said its access to higher-priced western gas markets will greatly increase as a result.
In exchange, Shell will receive cash and 155,000 net acres in the Marcellus Shale, primarily located in Tioga and Potter counties, Pa., from Ultra. Shell will obtain about 100 MMcfe/d of natural gas production.
"This transaction is a strategic repositioning of our portfolio generating improved returns, increased reserves, higher value markets, increased operatorship and increased control of capital allocation," said Michael D. Watford , Ultra's chairman, president and CEO, in a statement.
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