Shell sells more US gas assets

Royal Dutch Shell has announced that it was divesting itself of onshore gas assets in Pinedale, Wyoming and Haynesville, Louisiana while adding acreage in the Marcellus and Utica shale areas. The deals will see Shell receive approximately $2.1 billion in cash.

In an agreement with Ultra Petroleum, Shell will acquire 155,000 net acres in the Marcellus and Utica shale areas in Pennsylvania, and receive around $925,000 from Ultra in exchange for 100 percent of Shell’s Pinedale asset. In a separate agreement with Vine Oil & Gas and Blackstone, Shell has agreed to sell 100 percent of its Haynesville asset for $1.2 billion in cash.

Marvin Odum, Shell Upstream Americas Director said, “We continue to restructure and focus our North America shale oil and gas portfolio to deliver the most value in the longer term. With this announcement we are adding highly attractive exploration acreage, where we have impressive well results in the Utica, and divesting our more mature, Pinedale and Haynesville dry gas positions.”

Shell’s net production from Pinedale during the second quarter of 2014 was 190 million cubic feet per day of dry gas. Ultra’s net production from the assets Shell is acquiring in Pennsylvania averaged 109 million feet per day during the first half of the year.