Newfield announced that it plans to buy 50,000 acres in the Marcellus Shale. They are purchasing the land from EOG Resources for $405 million. There is limited production of 7 mmcf/d on this land from 11 wells that have been drilled but not completed.
This deal equates to $8,100 per acre and $20,000 per hectare. This is viewed as a positive news item demonstrating continued strength in the natural gas market. Companies are continuing to make purchases and are paying high prices for unbooked resource potential.
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