There is a new player in Ohio’s Utica shale: London-based BP.
The energy firm with Ohio roots announced today that is has acquired 84,000 acres in Trumbull County.
“We’re really excited about this,” said Tim Harrington, regional president for BP’s North American Gas business in Houston, Texas.
Terms of the deal with the Salem-based Associated Landowners of the Ohio Valley were not released, BP said in a teleconference.
The nonprofit group pooled its acreage from about 1,000 landowners and negotiated leases with BP.
Spokesman Bob Rea was unavailable today for comment on the deal.
The landowners’ group approved the package late Monday.
The lease agreement is expected to be signed in April.
The Youngstown Vindicator reported that the deal will pay a landowner a lease bonus of $3,900 per acre plus royalty payments of 17.5 percent on product produced.
BP said it expects to spend about six months signing leases with individual landowners before it begins assessing the potential of the Utica shale.
The deal marks BP’s first involvement in the Utica shale that lies under eastern Ohio.
To date, nearly 3.9 million acres in eastern Ohio have been leased for drilling.
BP is the sixth largest natural gas producer in the United States. It has 10,000 producing wells in the lower 48 states.