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Statoil expands Marcellus Shale acreage

Norwegian energy giant Statoil expands its acreage in the Marcellus Shale play in the United States (Statoil)
Norwegian energy giant Statoil expands its acreage in the Marcellus Shale play in the United States (Statoil)

STAVANGER, Norway, March 26 (UPI) -- Norwegian energy giant Statoil announced Friday that it signed a deal with Chesapeake Energy to add 59,000 acres to its Marcellus Shale gas portfolio.

Statoil paid an average price of $4,325 per acre in the shale gas play in the Appalachian basin. The companies in 2008 signed an agreement for period acquisitions of Marcellus Shale acreage.

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The latest acquisition gives Statoil the ability to join Chesapeake in optimizing its development activity in U.S. shale gas, said Andy Winkle, a Statoil vice president overseeing the transactions.

"We were an early mover into the Marcellus and we will continue to build a long-term position in what we expect will become a legacy asset and reach our goal of 50,000 barrels of oil equivalent per day production by 2012," he added.

Chesapeake in 2009 said gross daily production from the gas play reached 100 million cubic feet from approximately 60 wells.

Statoil has 600,000 acres in the Marcellus Shale play currently. Statoil and Chesapeake joined U.S. gas producer El Paso Corp. in February to develop the gas transport capacity from a gas pipeline in Pennsylvania to an interconnect in New Jersey.

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