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The Marcellus shale in Pennsylvania has proved to be an extraordinarily prolific dry gas producer and is profitable for drillers because it produces gas at high rates per well. production.
Shell will sell its Pinedale acreage in Wyoming to Ultra Petroleum for $925 million and 155,000 acres in the Utica and Marcellus shale formations in Ohio and Pennsylvania.
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Shell sells shale gas rights including area near Pinedale for
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It will sell its Haynesville acreage in Louisiana to Vine Oil Gas and the investment firm Blackstone for $1.2 billion.
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Shell and other major oil and gas explorers regularly sell rights to fields where production is flat or declining. They then use that cash to fund exploration programs designed to discover new or more prolific fields that oil giants need to fuel growth.
Ohio's Utica shale is also proving to be prolific, and it includes a higher proportion of more profitable liquid hydrocarbons. Nike V Neck Sports Bra
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Royal Dutch Shell agreed to sell drilling rights in shale formations in Louisiana and Wyoming for $2.1 billion in two transactions.
The Pinedale and Haynesville formations produce dry gas, which is less profitable than oil or so called natural gas liquids, at relatively moderate rates.
Utica gas production is expected to rise to 1.3 billion cubic feet per day in September, up nearly eightfold from 155 million cubic feet per day at the start of 2012, according to the Energy Department. division, Shell Oil Co.,said in a statement. "We are adding highly attractive exploration acreage where we have impressive well results in the Utica, and divesting our more mature Pinedale and Haynesville dry gas positions."We provide this community forum for readers to exchange ideas and opinions on the news of the day. Passionate views, pointed criticism and critical thinking are welcome. Name calling, crude language and personal abuse are not welcome. Moderators will monitor comments with an eye toward maintaining a high level of civility in this forum. Our comment policy explains Nike Black Jogger Pants
In one of the deals, announced Thursday, Shell will also receive drilling rights to land in Ohio and Pennsylvania. drilling program on a few of the more prolific Nike White Shorts Mens formations in an effort to boost profitability. by $2.1 billion last year amid lower natural gas prices.
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