Tuesday, November 16, 2010

Newfield announces plans to purchase 50,000 acres

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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