On the heels of its recently closed deal to acquire Marcellus and Utica assets, Southwestern Energy Company (NYSE: SWN) has signed a purchase and sale agreement to acquire an undivided 20% of Statoil's (NYSE: STO) ownership in oil and gas assets in West Virginia and southwest Pennsylvania for a purchase price of approximately $394 million, subject to adjustments.
Southwestern previously announced in October 2014 a purchase of Chesapeake Energy Corp.'s (NYSE: CHK) interest in these and other oil and gas properties. The deal closed on December 22.
This most recent purchase from Statoil equates to approximately 30,000 net acres and increases the company's overall working interest in the assets by approximately 5.8% to approximately 73%. Statoil's net production from these properties was approximately 29 million cubic feet of gas equivalent per day as of October 2014. When combined with the acreage acquired from Chesapeake, Southwestern is obtaining approximately 443,000 net acres.
This acquisition from Statoil is expected to close in early 2015 and is intended to be financed using the company's revolving credit facility.