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Ultra Petroleum to buy Pinedale field

Staff writer |
Ultra Petroleum has signed a purchase and sale agreement to acquire all Pinedale field properties from SWEPI, an affiliate of Royal Dutch Shell in exchange for a portion of Ultra's Marcellus Shale properties and cash consideration of $925 million.

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Ultra Petroleum expects to finance the acquisition through the issuance of new debt at the subsidiary and parent level. The transaction is expected to close in the third quarter with an effective date of April 1, 2014.

Ultra Petroleum is acquiring Shell's interest in the Pinedale field, which is currently producing approximately 189 million cubic feet equivalent (MMcfe) per day of natural gas and condensate. As a result of the transaction, Ultra Petroleum will operate approximately 1,577 gross wells, or about 68 percent of the Pinedale field.

In exchange, Shell will receive $925 million and approximately 155,000 net acres in the Marcellus Shale which is primarily located in Tioga and Potter counties. Shell will obtain approximately 100 MMcfe per day of natural gas production.

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