Shell has announced two separate transactions whereby the company will exit its Pinedale and Haynesville onshore gas assets in exchange for approximately US$2.1bn of cash, plus additional acreage in the Marcellus and Utica Shale areas in Pennsylvania (United States). In one agreement with Ultra Petroleum, Shell will acquire 155,000 net acres (about 627 km²) in the Marcellus and Utica Shale areas in Pennsylvania and receive a cash payment of US$925m from Ultra in exchange for 100% of Shell’s Pinedale asset in Wyoming, including associated gathering and processing contracts, subject to closing. In a separate agreement with Vine Oil & Gas and its partner Blackstone, Shell has agreed to sell 100% of its Haynesville asset in Louisiana, including associated field facilities and infrastructure for US$1.2bn in cash, subject to closing.
The Shell net production from Pinedale in the second quarter 2014 was 190 mcf/d of dry gas (32 kboe/d). During the first half of 2014, Ultra’s net production from the assets Shell is acquiring in Pennsylvania averaged 109 mcf/d (19 kboe/d).