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Article: Credit crunch squeezes Antero, Dominion deal in Marcellus Shale.(Regional Market Roundup)
- Article from:
- Natural Gas Week
- Article date:
- September 29, 2008
CopyrightCOPYRIGHT 2008 Energy Intelligence Group. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Dominion Resources has agreed to pare back an agreement to transfer drilling rights on a large portion of its Marcellus Shale leasehold in the Appalachian Basin to Antero Resources after Antero failed to secure financing due to the crisis in the financial markets.
Privately held Antero will now pay $347 million to Dominion for drilling rights to 114,259 acres in the Marcellus, down from the previous agreement of $552 million for rights to 205,000 acres (NGW Jul.7,p4).
The acreage that Dominion assigned to Antero is mainly located in western Pennsylvania and West Virginia. Richmond, Virginia-based Dominion holds 600,000 to 800,000 acres in the play.
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