Norwegian-based Statoil has announced a new agreement with US energy giant Chesapeake that will see the addition of 59,000 acres to the existing 600,000 acre position in the Pennsylvanian Marcellus Shale.
The deal is costing Statoil an estimated NOK 1.5 billion (USD 253 million) with an average cost per acre of NOK 25,000 (USD 4,235), reports Norway Post.
As part of the 2008 joint venture agreement that Statoil signed with Chesapeake, the Norwegian energy expert is allowed to periodically acquire new shares of the Chesapeake leasehold in the Marcellus Shale area.
Since it entered the Marcellus Shale arena in 2008, Statoil has delivered encouraging production performance results, with the new acreage expected to solidify its position in one of the largest shale gas operations in the United States.
The new acreage acquisition will also allow the Chesapeake partnership to optimise its activities and development, with continued growth forecast in the Marcellus region under the collaboration.
“We were an early mover into the Marcellus and we will continue to build a long term position in what we expect will become a legacy asset and reach our goal of 50,000 BOEPD (Barrels of Oil Equivalent Per Day) production by 2012,” said Vice President for the Marcellus Asset, Andy Winkle.