Southwestern Energy Co., based out of Houston, Texas, extended its footprint in the Marcellus and Utica shale plays.
The Houston Business Journal reports, “Southwestern signed a purchase and sale agreement for undivided 20 percent of in Norway-based Statoil ASA’s (NYSE: STO) ownership in oil and gas assets in West Virginia and southwest Pennsylvania for $394 million, subject to adjustments, according to a December 23 statement.”
Southwestern’s latest acquisition comes just a day after the company closed on an estimated $4.89 billion deal to acquire a total of 413,000 acres in the Marcellus and Utica plays. In October, when the acquisition was first announced, the value of the deal was $5.38 billion.
The deal was made with Chesapeake Energy Corp., and according to the Houston business Journal, “was financed with a temporary $4.5 billion, 364-day senior unsecured bridge term loan and a $500 million, two-year unsecured term loan.”
Southwestern’s deal with Statoil is equal to 30,000 net acres and will increase the company’s overall working interest in those assets by roughly six percent.
The deal between the two companies is expected to close in early 2015.
Southwestern has made huge pushes in the Marcellus and Utica shale plays. Other than its deals with Statoil and Chesapeake, Southwestern acquired gas and oil assets and additional firm transportation capacity in a purchase agreement with WPX Energy Inc.