US independent oil and natural gas exploration and production company Noble Energy has signed a definitive agreement to divest all of its upstream assets in northern West Virginia and southern Pennsylvania to an undisclosed buyer for a total amount of US$1,225m.
The transaction includes Marcellus shale assets with a current production of around 415 mcf/d of gas equivalent (11.7 mcm/d), of which 88% is gas, and a 100% working interest in approximately 385,000 acres (1,560 km²). Total proved reserves as of year-end 2016 related to these assets were 1.5 Tcf (42 bcm) of gas equivalent. In addition, the buyer will assume responsibility for up to 430 mcf/d (12 mcm/d) of gas of the company's firm transportation, established to support Marcellus upstream production. Noble Energy's interest in CONE Midstream is not included in the transaction.
The transaction is anticipated to close by the end of the second quarter of 2017, with a 1 January 2017 effective date.