Trans Energy, Inc. announced the signing of an agreement to divest its Marcellus assets in Tyler County, West Virginia, for approximately $11.2 million in net proceeds, subject to adjustments to be determined at closing.
The divestiture consists of 1,163 net acres, two pad sites, and one uncompleted horizontal Marcellus well. The acreage represents approximately six percent of Trans Energy's total net acreage position targeting the Marcellus Shale. The Company has not completed the horizontal Marcellus well in Tyler County and no longer plans to complete either of the two previously announced wells before the closing of the transaction. The transaction is expected to close before year end 2013, pending satisfactory title diligence by the buyer.
John Corp, President of Trans Energy, said, "Today's announcement supports our belief that Marcellus Shale acreage in northwest West Virginia is highly valuable."
Corp continued, "While we believe Tyler County is located in an attractive part of the Marcellus Shale, we determined that our acreage position in the county was not large enough to warrant spending additional resources. Moreover, we believe that allocating the proceeds from the sale toward development of our core acreage positions in Marshall, Wetzel and Marion Counties can further enhance the value of our positions in those counties, thereby increasing shareholder value." After the sale, Trans Energy will continue to own approximately 17,500 net acres in Marshall, Wetzel and Marion Counties.
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