Southwestern Energy Expands Northeast Marcellus Acreage Position And Firm Transportation Portfolio
HOUSTON, Dec. 2, 2014 /PRNewswire/ -- Southwestern Energy Company (NYSE: SWN), announced that it has signed an agreement to purchase oil and gas assets including approximately 46,700 net acres in northeast Pennsylvania from WPX Energy, Inc. (NYSE: WPX) for approximately $300 million, subject to customary closing conditions. This acreage is currently producing approximately 50 million net cubic feet of gas per day from 63 operated horizontal wells. Also as part of this transaction, Southwestern will assume firm transportation capacity of 260 million cubic feet of gas per day predominantly on the Millennium pipeline effective upon closing. The transaction is conditional upon receiving a waiver from the Federal Energy Regulatory Commission regarding transfer of the firm transportation capacity and is currently expected to close in the first quarter of 2015. Southwestern intends to use its revolving credit facility to finance the acquisition.
"We are very excited about the addition of this asset and firm transportation capacity to our portfolio," commented Steve Mueller, President and Chief Executive Officer of Southwestern Energy. "This acreage position complements our existing Marcellus acreage in northern Susquehanna County where we have recently seen very good results from two of our wells, the Hughes North 1H and the Dayton 4H. The Hughes North 1H has completed the entire lateral length of 4,981 feet and had a maximum 24-hour rate of 4.7 million cubic feet per day. The Dayton 4H has a total lateral length of 5,278 feet and tested a maximum 24-hour rate of 4.5 million cubic feet per day from the first 30% that is completed to date. Further, the additional firm transportation capacity adds to our existing firm transportation portfolio to provide 1.3 Bcf per day of firm transport capacity upon closing and growing to 1.4 Bcf per day by the end of 2016. The immediate availability of this firm transportation provides the pathway for ongoing growth in production over the next three years and the added acreage solidifies future value through a growing well inventory."
A map of the company's approximate post-closing acreage position in northeast Pennsylvania is shown below:
Photo - http://photos.prnewswire.com/prnh/20141202/161880
Southwestern Energy Company is an independent energy company whose wholly-owned subsidiaries are engaged in natural gas and oil exploration and production and natural gas gathering and marketing. Additional information about the company can be found on the internet at http://www.swn.com.
All statements, other than historical facts and financial information, may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements that address activities, outcomes and other matters that should or may occur in the future, including, without limitation, statements regarding the financial position, business strategy, production and reserve growth and other plans and objectives for the company's future operations, are forward-looking statements. Although the company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. The company has no obligation and makes no undertaking to publicly update or revise any forward-looking statements, other than to the extent set forth below. You should not place undue reliance on forward-looking statements. They are subject to known and unknown risks, uncertainties and other factors that may affect the company's operations, markets, products, services and prices and cause its actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In addition to any assumptions and other factors referred to specifically in connection with forward-looking statements, risks, uncertainties and factors that could cause the company's actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to: the timing and extent of changes in market conditions and prices for natural gas and oil (including regional basis differentials); the company's ability to transport its production to the most favorable markets or at all; the timing and extent of the company's success in discovering, developing, producing and estimating reserves; the economic viability of, and the company's success in drilling, the company's large acreage position in the Fayetteville Shale, overall as well as relative to other productive shale gas areas; the company's ability to fund the company's planned capital investments; the impact of federal, state and local government regulation, including any legislation relating to hydraulic fracturing, the climate or over the counter derivatives; the company's ability to determine the most effective and economic fracture stimulation for the Fayetteville Shale and the Marcellus Shale; the costs and availability of oil field personnel services and drilling supplies, raw materials, and equipment and services; the company's future property acquisition or divestiture activities; increased competition; the financial impact of accounting regulations and critical accounting policies; the comparative cost of alternative fuels; conditions in capital markets, changes in interest rates and the ability of the company's lenders to provide it with funds as agreed; credit risk relating to the risk of loss as a result of non-performance by the company's counterparties and any other factors listed in the reports the company has filed and may file with the Securities and Exchange Commission (SEC). For additional information with respect to certain of these and other factors, see the reports filed by the company with the SEC. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/southwestern-energy-expands-northeast-marcellus-acreage-position-and-firm-transportation-portfolio-300003657.html
SOURCE Southwestern Energy Company
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