Shell sells more US gas assets for US$2.1billion

August 14, 2014 | Mergers, Acquisitions & JVs, United States & Canada

London, United Kingdom | –  Royal Dutch Shell announced yesterday the sale of onshore US shale gas assets as the energy company restructures its North America production and reins in costs. Shell said that it had agreed to sell its relatively mature natural gas-producing properties in Wyoming’s Pinedale field and Louisiana’s Haynesville field for about US$2.1 billion in cash.

The Anglo-Dutch company is selling the Pinedale asset to Ultra Petroleum for US$925 million in cash and acreage in the Marcellus and Utica oil and gas shale fields in Pennsylvania. It will sell the Haynesville asset to Vine Oil & Gas LP and its partner Blackstone for US$1.2 billion.

“We continue to restructure and focus our North America shale oil and gas portfolio to deliver the most value in the longer term,” said Marvin Odum, Shell’s upstream Americas director.

In the second quarter of this year, Shell produced 190 million cubic feet per day (mcf/d) of natural gas from Pinedale. Shell said that the Haynesville gas production reached 700 mcf/d as of July 1.