PINEDALE – Shell and Ultra Resources announced a purchase sales agreement last Thursday morning in which Shell sold its Pinedale assets in the Anticline Field to Ultra for $925 million in cash, as well as some land in the Pennsylvania Marcellus and Utica Shale. This is the second sale of a production company’s Sublette County assets this year.
The announcement came after weeks of rumors surrounding Shell’s sale and field visits by a handful of energy companies. Shell also sold off its Haynesville, La., Magnolia Field assets to Vine Oil and Gas and its partner, Blackstone, for $1.2 billion. Both deals are expected to be finalized by the end of the year, although they have effective dates of April 1 and July 1, respectively.
Ultra and Shell have operated closely in the Pinedale Anticline, sharing working interests in a number of locations across the field. The sale gives Ultra full interest and operation responsibilities for many of those wells. Working interest in additional wells remains shared with QEP, another Anticline partner.
The sale is in line with Shell’s move toward more unconventional exploration and production, as well as Ultra’s focus on low-cost, high-margin assets.
For the complete article see the 08-20-2014 issue.
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