Denham Capital, an energy-focused equity firm, has sold its participation in the Marcellus shale to Williams through transfer of approximately 42,000 net acres acquired in partnership with Alta Resources, an oil and natural gas exploration company, and other investors.
Williams acquired the acreage for $501m, estimated to represent approximately 1.2 trillion cubic feet equivalent in total net natural gas reserves potential.
In February 2009, Denham and Alta entered into a partnership wherein Denham provided additional capital for Alta to purchase natural gas leases from landowners primarily located in Susquehanna County in northeastern Pennsylvania.
Carl Tricoli, managing partner of Denham, said: “This partnership was Denham’s first foray into the Marcellus. Through Alta, we partnered with a proven leader in shale development to take advantage of the basin’s cost-competitive production and proximity to key gas markets.”