Noble Energy has struck a deal to sell off its assets in the natural gas-rich Marcellus Basin in the northeastern United States for $1.2 billion.
It didn’t name the buyer in its statement on Tuesday. The Houston company said $100 million of the $1.2 billion price tag will come from three equal contingent payments that depend on regional natural gas prices rising above a certain level over the next few years. The other $1.1 billion is cash.
Noble said it’s selling assets that produce 415 million cubic feet of natural gas equivalent a day across 385,000 acres in northern West Virginia and southern Pennsylvania. About 88 percent of that production is gas, rather than oil or liquids. It had some proved reserves of 1.5 trillion cubic feet of natural gas equivalent.
The Marcellus Shale is still the biggest shale gas play in the nation, and it soaked up the lion’s share of the oil industry’s early investments in shale gas. When natural gas prices tanked half a decade ago, shale drillers began looking for unconventional oil in places like the Eagle Ford Shale in South Texas, and another boom began.
Noble’s deal is set to close by the end of the second quarter. The company plans to pay off the debt it took on when it bought Clayton Williams Energy, which shifted the company’s center of gravity toward the Delaware Basin in West Texas.
In a statement Tuesday, Noble CEO David Stover said the Marcellus has performed well in recent years but that the company has turned its focus to more lucrative oil plays.
Wasson - 1936
Total barrels produced: 1.8 billion
Frio Deep-Seated Salt Dome - 1902
Total barrels produced: 2.4 billion
East Texas - 1930
Total barrels produced: 5.1 billion
Talco - 1936
Total barrels produced: 266 million
Anahuac - 1935
Total barrels produced: 277 million
Woodbine fualt-line - 1920
Total barrels produced: 280 million
Hastings - 1934
Total barrels produced: 353 million
Van field - 1901
Total barrels produced: 501 million
Conroe - 1931
Total barrels produced: 712 million
Total barrels produced: 1.1 billion
Vicksburg Fault Zone - 1928
Total barrels produced: 1.12 billion
Kelly-Synder - 1948
Total barrels produced: 1.2 billion
Panhandle - 1910
Total barrels produced: 1.42 billion
Texas has long been at the center of the American energy industry.
Take a look at some of the biggest oilfield finds in the state’s history in the gallery above.