Southwestern Energy sells West Virginia acreage to Antero


HOUSTON -- Southwestern Energy has entered into a definitive agreement with Antero Resources to sell approximately 55,000 net acres in West Virginia for $450 million.  

The properties are located in Doddridge, Harrison, Marion, Monongalia, Pleasants, Ritchie, Tyler and Wetzel Counties and are currently producing from the Marcellus shale. Net production from this acreage is approximately 14 MMcfe per day, primarily from non-operated wells, and proved reserves on this acreage were 11 Bcfe as of Dec. 31, 2015. The company has no current plans to drill on these properties before 2023. 

The cash proceeds from the transaction are expected to be used to reduce the principal balance of the company's $750-million term loan due in November 2018.

"This transaction is one step on delivering on the commitment we made to strengthen our balance sheet in 2016," Bill Way, president and CEO of Southwestern Energy, said. "We are bringing forward the value of acreage that is much longer dated in our development plans, enabling us to take action and proactively reduce outstanding debt.”

The transaction is expected to close in the third quarter of 2016.

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