trending Market Intelligence /marketintelligence/en/news-insights/trending/6KSMjjtw_oJWWwHh9riZAg2 content esgSubNav
In This List

Appalachian producer Eclipse Resources to buy Utica Shale acreage in $93.7M deal

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


Appalachian producer Eclipse Resources to buy Utica Shale acreage in $93.7M deal

Appalachian producer Eclipse Resources Corp. agreed to acquire oil and gas leases in north-central Pennsylvania from Travis Peak Resources LLC for $93.7 million worth of Eclipse's shares. Eclipse said the acreage will hold Utica Shale wells that can compete against core dry gas Utica wells in Southeast Ohio.

The assets include about 44,500 net acres in Tioga and Potter counties in Pennsylvania, delineated by 22 Utica Shale wells. With the acquired contiguous acreage, Eclipse plans to create a new core area called the Flat Castle project area, with wells expected to yield an estimated ultimate recovery of between 2.0 Bcf and 2.3 Bcf per 1,000 feet of lateral.

"We believe the Flat Castle project area is located in one of the best underdeveloped areas of the Appalachian Basin and will nicely complement our existing asset base, with the potential returns on these wells competing with those in our core Utica dry gas acreage," said Benjamin Hulburt, chairman, president and CEO of Eclipse.

Production from the area would be transported through Dominion Energy Inc. and Tennessee Gas Pipeline Co. gathering systems. The deal is projected to add about 87 net drilling locations, boosting Eclipse's Utica dry gas acreage by approximately 85%, according to a Dec. 11 news release. Full-scale development is scheduled for the fourth quarter of 2018.

The deal is scheduled to close in January 2018.

In connection with the Travis Peak agreement, Eclipse said its midstream unit Eclipse Resources Midstream LP agreed to acquire the right to purchase outstanding equity interests of Cardinal NE Holdings LLC for $18.3 million in cash from Cardinal Midstream II LLC. Cardinal owns the midstream infrastructure associated with the acreage.