Blackstone Chairman and CEO Stephen A. Schwarzman. Image courtesy of Blackstone/Youtube.

Royal Dutch Shell sold two natural gas assets for $2.1 billion Thursday.

Shell sold a 100 percent stake in its Haynesville, Louisiana asset to Dallas-based Vine Oil & Gas and its partner Blackstone Group, led by billionaire Stephen A. Schwarzman, for $1.2 billion in cash.

The asset covers 107,000 acres.

The deal includes 418 producing wells, 193 of them operated by Shell, and associated field facilities and infrastructure.

As of July 2014, the gross production from the Haynesville was approximately 700 million cubic feet per day of dry gas, with Shell’s net working interest share at approximately 250 mmscf/d (43 kboe/d).

The agreement is effective July 1, 2014 and is expected to close in the fourth quarter of 2014.

Shell also sold a 100 percent stake in its Pinedale, Wyoming asset to Houston-based independent Ultra Petroleum for $925 million and 155,000 net acres in the Marcellus and Utica shale areas of Pennsylvania.

The deal includes associated gathering and processing contracts.

Shell’s Pinedale asset has 19,000 net acres of leasehold interest, 1,108 gross wells and associated facilities, and an average of 0.7 percent overriding royalty interest in 11,500 acres.

When the deal closes, Shell will have a 100 percent interest in the Tioga Area of Mutual Interest, a joint venture with Ultra that holds 92,000 net shale acres in Tioga, Pennsylvania.

The Ultra deal is effective April 1, 2014, and is expected to close this year.

The sales are part of Shell’s larger plan to shed $15 billion in assets around the world.


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