As part of this expansion, Trans Energy sold Republic Energy a 50% interest in approximately 5,000 net acres in Marion County and approximately 2,600 net acres in Tyler County and a small overriding royalty position on over 6,000 net acres in Wetzel County for cash proceeds of $23.5m and drilling credits of $3.5.
Trans Energy repaid $15m on its senior credit facility and intends to use the balance of the proceeds for working capital to develop its position in the Marcellus shale and for general corporate purposes.
John Corp, president of Trans Energy, said: “The entry of the joint venture into both Marion and Tyler counties expands our relationship with Republic into two additional counties we believe hold substantial reserves and the potential to add significantly to our production.
“We continue to move forward with our plan to rapidly develop our acreage position in the Marcellus shale along with our experienced partner. We have plans to jointly drill up to five additional horizontal Marcellus wells this year and are developing our capital plan for 2011 with our partner.”
