Atlas Energy and Reliance Industries acquire additional acres in Marcellus shale

As part of the joint venture agreement made between the two companies earlier this month, which was formally closed yesterday, Reliance had the option of taking a 40% share in any new acreage that was acquired and has decided to exercise that right in this instance.

"These transactions reflect the desire of both Atlas and Reliance to add highly prospective acreage that will enable our joint venture to accelerate development," stated Richard D. Weber, President of Atlas Energy, Inc. "The contiguous nature of this acreage will enable us to concentrate our development and we intend to develop a large percentage of this acreage in the next five years.”

In total, 42,344 extra acres have been acquired by the joint venture partners at an average cost of US$ 4532 per acre. The company believes that up to 450 new wells could be drilled in the newly acquired acreage. The total acreage now held by the two companies is approximately 343,000 acres, of which Atlas controls 206,000 acres.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/22042010/atlas-energy-and-reliance_industries_acquire_additional_acres_in_marcellus_shale/