CNX Resources and Hess have completed their previously announced sale of their Ohio Utica joint venture interests in the shale play in eastern Ohio, US for around $400m to Ascent Resources.
Image: Hess and CNX Resources completed sale of 39,000 net acres in Utica shale play for $400m to Ascent Resources. Photo: courtesy of Hess Corporation.
The deal involves sale of 39,000 net acres to Ascent Resources including 26,000 net undeveloped acres.
Hess said that it will use the proceeds from the deal to invest in its higher return growth opportunities in Guyana and the Bakken, and also for funding the previously announced share repurchase program.
In Guyana, Hess announced a ninth discovery in the Guyana basin last week following the drilling of the Longtail-1 well in the Stabroek Block.
CNX Resources, on the other hand, had earlier said that it would use the net proceeds from the sale to pay down debt, invest in drilling and completion activities and also for making bolt-on acreage acquisitions whenever opportunities are available.
The sale for CNX Resources included 50 net producing wells, five 50% working interest wells it had recently completed, two 50% working interest wells for which it has drilled the top hole, and nearly 26,000 net undeveloped acres.
The sold assets are located in the wet gas Utica Shale areas of Belmont, Guernsey, Harrison, and Noble counties.
Ascent Resources has also completed acquisition of natural gas and oil leasehold interests, fee minerals and associated assets in the Utica shale play in the Appalachian Basin from Utica Minerals Development for around $477m.
The company had also entered into an agreement with a fourth undisclosed buyer to acquire acreage in the Utica shale play, taking its total transactions in the region to around $1.5bn.
The acquisitions made by Ascent Resources include 93 operated wells and net production of about 216MMcfe/d, out of which 19% are liquids. It will also include more than 380 gross incremental horizontal well locations and an increased working stake in 900+ gross horizontal well locations.
Overall, Ascent Resources, through the multiple transactions, will be adding close to 113,400 net leasehold acres, and royalty interests on nearly 69,400 fee mineral acres, spread across the three hydrocarbon windows in the over-pressured core of the Utica Shale.