Ultra Petroleum Corp. announced today that it will purchase 80,000 net acres in the Marcellus Shale for $400 million. This equates to $5,000/acre.
This is another example of a company placing a high valuation on acreage in a shale play and lends further support to the $6,600/acre paid for Montney rights at the October '09 BC land sale.
Companies are paying a premium for acreage in the top two shale plays in North America, the Montney Shale and the Marcellus Shale. Canadian Spirit Resources Inc. (SPI), along with its joint venture partner, is currently testing its Montney Formation in the Farrell Creek area and we should expect initial results shortly.
The article noted above also states, "The demand for gas, which burns much cleaner than either oil or coal, is expected to increase steadily worldwide as nations struggle to control emissions that contribute to pollution."
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