There have been numerous announcements on various websites about EQT Corp. acquiring acreage for drilling and other gas extraction activities. Most have indicated this acquisition is an outright purchase of the land – rather than a long-term lease. Below is what POGAM (Pennsylvania Oil & Gas Association – an industry alliance) and EQT say about this acquisition. The links for each announcement lead to the full releases from EQT and POGAM.If EQT’s acquisition is an outright purchase and not a lease, this is appears to be a new (or at least an increasing) way to acquire rights to drill in the Marcellus Shale. And it is something that taxpayers and landowners need to be aware of. If oil and gas companies end up owning large chunks of our state, particularly in places adjacent to privately-owned residential areas, what will be the outcome long-term? Will big oil and gas, out-of-area corporations, care as much as locals do for public health, safety, the environment and the local economy?If anyone receiving this message can clarify the nature of this EQT acquisition – purchase, lease, something in-between – please send that clarification to me.EQT’s announcement:EQT Announces Strategic Marcellus Acreage Acquisition;Increases EUR per Marcellus Well;Provides Update on Latest Marcellus WellPITTSBURGH, March 2, 2010/ PRNewswire-FirstCall/ –EQT Corporation (NYSE: EQT) todayannounced that it will acquire approximately 58,000 net acres in the Marcellus Shale from a groupof private operators and landowners. The acreage is located primarily in Cameron, Clearfield, Elk andJefferson counties in Pennsylvania. The purchase includes a 200 mile gathering system, withassociated rights of way, and approximately 100 producing vertical wells.
At closing, EQT will pay approximately $280 million, 90% with EQT stock and 10% with cash.Following the closing of the acquisition, EQT will hold more than 500,000 net acres in the highpressureMarcellus shale fairway. The company expects the transaction to close by April 30, subjectto customary closing conditions.
“We are pleased to add to our substantial, firmly held acreage position in the heart of theMarcellus fairway. We have extensive midstream assets and firm contracts to gather and transportnatural gas to the lucrative eastern markets,” commented Murry Gerber, chairman and chief executiveofficer. “ ….To read the full EQT release, click here:POGAM’s announcement:EQT announces Marcellus acreage acquisition, ups per-well production estimate
PITTSBURGH, PA (3/3/2010) – EQT Corporation announced it will acquire approximately 58,000 net acres in the Marcellus Shale from a group of private operators and landowners. The acreage is located primarily in Cameron, Clearfield, Elk and Jefferson counties in Pennsylvania. The purchase includes a 200-mile gathering system, with associated rights of way, and approximately 100 producing vertical wells.
At closing, EQT will pay approximately $280 million, 90 percent with EQT stock and 10 percent with cash. Following the closing of the acquisition, EQT will hold more than 500,000 net acres in the high-pressure Marcellus shale fairway. The company expects the transaction to close by April 30….To read the full POGAM release, click here:
Filed under: drilling in pa | Tagged: cameron county pa, clearfield county PA, drilling, drilling in pa, elk county PA, EQT corp, gas drilling, gas leases, gas wells, jefferson county pa, marcellus shale, Murry Gerber, natural gas, natural gas exploration, Pennsylvania Oil & Gas Association, POGAM, Strategic Marcellus Acreage Acquisition |