Chief Oil & Gas Acquires Assets in the Marcellus Shale
Wexford, Penn – December 17, 2013 – Chief Oil & Gas and working interest partners Enerplus and Tug Hill have acquired MKR Holdings LLC from Chesapeake Appalachia LLC for approximately $500 million.
The acquired assets include current month production of approximately 130,000 MCFD and approximately 40 operated wells waiting on completion or pipeline as well as undeveloped acreage. The acquisition includes leasehold in Bradford, Lycoming, Sullivan, Susquehanna and Wyoming Counties in Pennsylvania.
“With this acquisition we have significantly expanded our operational footprint in the northeastern Pennsylvania region,” stated Sam Fragale, Senior Vice President of Operations for Chief Oil & Gas. “This acquisition comes with existing cash flow from current production, increases our working interest in wells we currently operate and provides additional development opportunities in a great area.”
Chief Oil & Gas had existing working interest in many of these wells and will be increasing its ownership percentage in these and future wells as a result of the acquisition. Chief Oil & Gas currently operates more than 100 wells in the Marcellus Shale and owns approximately 210,000 gross leasehold acres.
This asset purchase is another stage in the multi-phased growth plan for Chief Oil & Gas in the Marcellus Shale region.
About Chief Oil & Gas
Chief Oil & Gas is a privately held exploration and development company founded by Trevor Rees-Jones. Based in Dallas, Texas, with regional offices in Wexford and Williamsport, Pennsylvania, Chief operates primarily in the Marcellus Shale in northeastern Pennsylvania, but holds interests in oil & gas fields throughout the United States.
About Tug Hill
Tug Hill is a diversified investment firm based in Fort Worth, Texas. The firm’s largest investment concentration is in the domestic oil and gas industry as an operator through its affiliate, Tug Hill Operating; as a non-operator through working interest and leasehold ownership; and as a fee mineral investor. Tug Hill also actively invests in real estate and maintains diversified holdings in the public and private equity markets.
Enerplus is a North American energy producer with a diversified asset base of high-quality, low-decline oil and gas assets complemented by growth assets in resource plays with superior economics. Enerplus is focused on creating value for its investors through the successful development of its properties and the disciplined management of its balance sheet. Through its activities, Enerplus strives to provide investors with a competitive return comprised of both growth and income.