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Ohio Utica Shale

Rice Energy buys 22,000 acres in Marcellus from Chesapeake

By Bob Downing Published: July 7, 2014

From Rice Energy today:

CANONSBURG, Pa., July 7, 2014 /PRNewswire/ -- Rice Energy Inc. (NYSE: RICE) today announced that it has signed a definitive purchase and sale agreement to acquire approximately 22,000 net acres and 12 developed Marcellus wells in western Greene County, Pennsylvania, from Chesapeake Appalachia, LLC and its partners for approximately $336 million. We expect to close the transaction in August 2014, subject to customary closing conditions, with an effective date of February 1, 2014.

Acquisition Highlights

  • Approximately 22,000 net acres (100% operated, average 95% working interest), representing a 24% increase in our net acreage position as of March 31, 2014
  • Approximately 152 net risked locations, representing a 47% increase to our Marcellus inventory of 325 net risked locations as of March 31, 2014
  • Current net production of approximately 20 MMcf/d from 7 wells, plus 5 additional wells in various stages of development

Toby Rice, President and Chief Operating Officer, commented, "This transaction is consistent with our strategy of acquiring high-quality shale assets. We are adding a significant number of drilling locations within an area we have been successfully developing since 2009. The acquired assets provide us with a foothold to pursue additional leasehold opportunities and further grow our inventory of low-risk, high-return projects."

Acquisition Financing and Leasehold Update

We intend to fund the acquisition through a combination of cash on hand, borrowings under our revolving credit facility and are evaluating the equity capital markets. We are still on track to achieve our goal of organically adding 30,000 net leasehold acres this year.

About Rice Energy
Rice Energy Inc. is an independent natural gas and oil company engaged in the acquisition, exploration and development of natural gas and oil properties in the Appalachian Basin. For more information, please visit our website at www.riceenergy.com.

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Ohio Department of Natural Resources' Division of Oil and Gas Resources Management State agency Web site.

ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

ODNR Division of Geological Survey.

Ohio Environmental Protection Agency.

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Ohio Farm Bureau.

Ohio Oil and Gas Association, a Granville-based group that represents 1,500 Ohio energy-related companies.

Ohio Oil & Gas Energy Education Program.

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Marcellus and Utica Shale Resource Center by Ohio law firm Bricker & Eckler.

Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.

Rig Count Interactive Map by Baker Hughes, an energy services company.

Shale Sheet Fracking, a Youngstown Vindicator blog.

National Geographic's The Great Shale Rush.

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Buckeye Forest Council.

Earthjustice, a national eco-group.

Stop Fracking Ohio.

People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.

Concerned Citizens of Medina County, a grass-roots group.

No Frack Ohio, a Columbus-based grass-roots group.

Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.

Penn State Marcellus Center.

Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.

Allegheny Front, environmental public radio for Western Pennsylvania.