Chief expands reach in Wyoming and other Pa. Marcellus Shale counties
Chief Oil & Gas and partners Enerplus and Tug Hill have acquired MKR Holdings LLC from Chesapeake Appalachia LLC for about $500 million, expanding Chief’s leasehold in Wyoming County and other Pennsylvania counties in the Northern Tier, Chief announced on Tuesday.
The acquired assets include current month production of about 130 million cubic feet per day and about 40 operated wells waiting on completion or pipeline as well as undeveloped acreage. The acquisition includes leaseholds in Bradford, Lycoming, Sullivan, Susquehanna and Wyoming Counties in Pennsylvania.
“With this acquisition we have significantly expanded our operational footprint in the northeastern Pennsylvania region,” said Sam Fragale, Senior Vice President of Operations for Chief Oil & Gas, in a press release. “This acquisition comes with existing cash flow from current production, increases our working interest in wells we currently operate and provides additional development opportunities in a great area.”
Chief Oil & Gas had existing working interest in many of these wells and will be increasing its ownership percentage in these and future wells as a result of the acquisition, Chief said in the press release. Chief Oil & Gas currently operates more than 100 wells in the Marcellus Shale and owns about 210,000 leasehold acres.
The asset purchase is another stage in the multi-phased growth plan for Chief Oil & Gas in the Marcellus Shale region, Chief announced.Contact Person: Wilkes-Barre Times Leader