Atlas, Reliance to expand JV by acquiring more assets in Marcellus Shale
22 Apr 2010
US-based Atlas Energy is expanding its successful tie-up with India's energy giant Reliance Industries with both companies agreeing to acquire 42,344 acres in the gas-rich Marcellus shale, after having announced a joint venture earlier this month.
Pennsylvania-based Atlas Energy said today that the joint venture would acquire Marcellus Shale's "highly prospective" 42,344 acres in Fayette, Washington, Indiana, Westmoreland, Armstrong and Clarion Counties of Pennsylvania for an average purchase price of $4,532 per acre.
Early this month, Reliance Industries said that it would invest $1.7 billion in a joint venture with Atlas Energy, under which the Mumbai-based energy giant will acquire an interest in Atlas Energy's Marcellus Shale position equal to 120,000 net acres. (See: Reliance to invest $1.7 billion in JV with Atlas Energy)
Atlas said that Reliance has agreed to exercise its right to acquire its 40 per cent interest in the new acreage and as a result of this new acquisitions, the Atlas / Reliance joint venture will now control approximately 343,000 Marcellus Shale acres, of which Reliance's holding will be 137,000 net acres.
"These transactions reflect the desire of both Atlas and Reliance to add highly prospective acreage that will enable our joint venture to accelerate development," stated Richard Weber, president of Atlas.
"The contiguous nature of this acreage will enable us to concentrate our development and we intend to develop a large percentage of this acreage in the next five years," he added.