BN 08/14 12:33 *SHELL TO EXIT TWO SITES FOR $2.1B CASH PLUS ADDED ACREAGES
BN 08/14 12:33 *SHELL TO ACQUIRE ACRES IN MARCELLUS & UTICA SHALE FROM ULTRA
BN 08/14 12:33 *SHELL TO SELL HAYNESVILLE ASSET FOR $1.2B
BN 08/14 12:32 *SHELL TO GET PAYMENT $0.925B FROM ULTRA
BFW 08/14 12:32 *SHELL WILL EXIT PINEDALE AND HAYNESVILLE ONSHORE GAS ASSETS
BN 08/14 12:32 *SHELL TO EXIT PINEDALE & HAYNESVILLE ONSHORE GAS ASSETS
BN 08/14 12:32 *SHELL TO GET 155,000 ACRES IN MARCELLUS, UTICA IN PA
BN 08/14 12:32 *SHELL: WILL EXIT PINEDALE AND HAYNESVILLE ONSHORE GAS ASSETS
BN 08/14 12:31 *SHELL: DEAL FOR ABOUT $2.1B OF CASH, PLUS ADDED ACREAGE
BN 08/14 12:31 *SHELL: TO EXIT ASSETS IN EXCHANGE FOR $2.1B BASH, PLUS ACREAGE
BN 08/14 12:30 *SHELL: SHELL DIVESTS U.S. ONSHORE GAS ASSETS IN PINEDALE &
BN 08/14 12:30 *SHELL: SHELL SELLS U.S. ONSHORE GAS ASSETS IN PINEDALE,
BN 08/14 12:33 *SHELL TO ACQUIRE ACRES IN MARCELLUS & UTICA SHALE FROM ULTRA
BN 08/14 12:33 *SHELL TO SELL HAYNESVILLE ASSET FOR $1.2B
BN 08/14 12:32 *SHELL TO GET PAYMENT $0.925B FROM ULTRA
BFW 08/14 12:32 *SHELL WILL EXIT PINEDALE AND HAYNESVILLE ONSHORE GAS ASSETS
BN 08/14 12:32 *SHELL TO EXIT PINEDALE & HAYNESVILLE ONSHORE GAS ASSETS
BN 08/14 12:32 *SHELL TO GET 155,000 ACRES IN MARCELLUS, UTICA IN PA
BN 08/14 12:32 *SHELL: WILL EXIT PINEDALE AND HAYNESVILLE ONSHORE GAS ASSETS
BN 08/14 12:31 *SHELL: DEAL FOR ABOUT $2.1B OF CASH, PLUS ADDED ACREAGE
BN 08/14 12:31 *SHELL: TO EXIT ASSETS IN EXCHANGE FOR $2.1B BASH, PLUS ACREAGE
BN 08/14 12:30 *SHELL: SHELL DIVESTS U.S. ONSHORE GAS ASSETS IN PINEDALE &
BN 08/14 12:30 *SHELL: SHELL SELLS U.S. ONSHORE GAS ASSETS IN PINEDALE,
Shell: Shell divests U.S. onshore gas assets in Pinedale and Hanesville, adds acreage in Marcellus and Utica
2014-08-14 12:30:37.130 GMT
Shell: Shell divests U.S. onshore gas assets in Pinedale and Hanesville, adds
acreage in Marcellus and Utica
HOUSTON, 14 August 2014 - Royal Dutch Shell plc ("Shell") announces today two
separate transactions whereby the company will exit its Pinedale and
Haynesville onshore gas assets in exchange for approximately $2.1 billion of
cash, plus additional acreage in the Marcellus and Utica Shale areas in
Pennsylvania.
In one agreement with Ultra Petroleum, Shell will acquire 155,000 net acres in
the Marcellus and Utica Shale areas in Pennsylvania and receive a cash payment
of $0.925 billion from Ultra in exchange for 100 percent of Shell's Pinedale
asset in Wyoming, including associated gathering and processing contracts,
subject to closing.
In a separate agreement with Vine Oil & Gas LP and its partner Blackstone,
Shell has agreed to sell 100 percent of its Haynesville asset in Louisiana,
including associated field facilities and infrastructure for $1.2 billion in
cash, subject to closing.
"We continue to restructure and focus our North America shale oil and gas
portfolio to deliver the most value in the longer term. With this announcement
we are adding highly attractive exploration acreage, where we have impressive
well results in the Utica, and divesting our more mature, Pinedale and
Haynesville dry gas positions," said Marvin Odum, Shell's Upstream Americas
Director.
The Shell net production from Pinedale in the second quarter 2014 was 190
million standard cubic feet per day (mmscf/d) of dry gas (32 thousand barrels
of oil equivalent per day (kboe/d)). During the first half of 2014, Ultra's
net production from the assets Shell is acquiring in Pennsylvania averaged 109
mmscf/d (19 kboe/d).
"We first entered the Pinedale Anticline in 2001, and I am proud of our
operational excellence, community engagement, and leadership in responsible
energy development over that time," said Odum.
Shell's Pinedale asset (which includes 19,000 net acres of leasehold interest,
1,108 gross wells and associated facilities, and an average of 0.7 percent
overriding royalty interest in 11,500 acres) will be exchanged for cash and
Ultra's 100 percent interest in the Marshlands area (63,000 net acres) as well
as its entire interest (92,000 net acres) in the Tioga Area of Mutual Interest
(AMI), an unincorporated joint venture with Shell. After completion of this
transaction, Shell will have a 100 percent interest in the Tioga AMI. The
agreement is effective 1 April 2014, and is expected to close this year.
Shell's Haynesville asset includes 107,000 net acres in in north Louisiana.
The transaction includes 418 producing wells, 193 of them operated by Shell.
As of 1 July 2014, the gross production from the Haynesville asset was
approximately 700 mmscf/d of dry gas, with Shell's net working interest share
at approximately 250 mmscf/d (43 kboe/d). The agreement is effective 1 July
2014, and is expected to close in the fourth quarter of this year.
"We very much appreciate the support we have had in north Louisiana, and we
will continue to operate in the state, as we have for decades, through our
downstream, retail, midstream, and New Orleans-based deep-water operations,"
said Odum.
# # #
INQUIRIES:
Investor Relations
North America: +1 832 337 2034
International: +31 (0) 70 377 4540
Media
Shell US Media Relations: +1 713 241 4544
Shell International Media Relations: +44 (0) 207 934 5550
Cautionary Note
The companies in which Royal Dutch Shell plc directly and indirectly owns
investments are separate entities. In this release "Shell", "Shell group" and
"Royal Dutch Shell" are sometimes used for convenience where references are
made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the
words "we", "us" and "our" are also used to refer to subsidiaries in general
or to those who work for them. These expressions are also used where no useful
purpose is served by identifying the particular company or companies.
''Subsidiaries'', "Shell subsidiaries" and "Shell companies" as used in this
release refer to companies over which Royal Dutch Shell plc either directly
or indirectly has control. Companies over which Shell has joint control are
generally referred to "joint ventures" and companies over which Shell has
significant influence but neither control nor joint control are referred to as
"associates". In this release, joint ventures and associates may also be
referred to as "equity-accounted investments". The term "Shell interest" is
used for convenience to indicate the direct and/or indirect ownership interest
held by Shell in a venture, partnership or company, after exclusion of all
third-party interest.
This release contains forward-looking statements concerning the financial
condition, results of operations and businesses of Royal Dutch Shell. All
statements other than statements of historical fact are, or may be deemed to
be, forward-looking statements. Forward-looking statements are statements of
future expectations that are based on management's current expectations and
assumptions and involve known and unknown risks and uncertainties that could
cause actual results, performance or events to differ materially from those
expressed or implied in these statements. Forward-looking statements include,
among other things, statements concerning the potential exposure of Royal
Dutch Shell to market risks and statements expressing management's
expectations, beliefs, estimates, forecasts, projections and assumptions.
These forward-looking statements are identified by their use of terms and
phrases such as ''anticipate'', ''believe'', ''could'', ''estimate'',
''expect'', ''goals'', ''intend'', ''may'', ''objectives'', ''outlook'',
''plan'', ''probably'', ''project'', ''risks'', "schedule", ''seek'',
''should'', ''target'', ''will'' and similar terms and phrases. There are a
number of factors that could affect the future operations of Royal Dutch Shell
and could cause those results to differ materially from those expressed in the
forward-looking statements included in this release, including (without
limitation): (a) price fluctuations in crude oil and natural gas; (b) changes
in demand for Shell's products; (c) currency fluctuations; (d) drilling and
production results; (e) reserves estimates; (f) loss of market share and
industry competition; (g) environmental and physical risks; (h) risks
associated with the identification of suitable potential acquisition
properties and targets, and successful negotiation and completion of such
transactions; (i) the risk of doing business in developing countries and
countries subject to international sanctions; (j) legislative, fiscal and
regulatory developments including regulatory measures addressing climate
change; (k) economic and financial market conditions in various countries and
regions; (l) political risks, including the risks of expropriation and
renegotiation of the terms of contracts with governmental entities, delays or
advancements in the approval of projects and delays in the reimbursement for
shared costs; and (m) changes in trading conditions. All forward-looking
statements contained in this release are expressly qualified in their entirety
by the cautionary statements contained or referred to in this section. Readers
should not place undue reliance on forward-looking statements. Additional risk
factors that may affect future results are contained in Royal Dutch Shell's
20-F for the year ended December 31, 2013 (available at www.shell.com/investor
and www.sec.gov). These risk factors also expressly qualify all forward
looking statements contained in this release and should be considered by the
reader. Each forward-looking statement speaks only as of the date of this
release, 14 August, 2014. Neither Royal Dutch Shell plc nor any of its
subsidiaries undertake any obligation to publicly update or revise any
forward-looking statement as a result of new information, future events or
other information. In light of these risks, results could differ materially
from those stated, implied or inferred from the forward-looking statements
contained in this release.
We may have used certain terms, such as resources, in this release that United
States Securities and Exchange Commission (SEC) strictly prohibits us from
including in our filings with the SEC. U.S. Investors are urged to consider
closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC
website www.sec.gov. You can also obtain these forms from the SEC by calling
1-800-SEC-0330.
2014-08-14 12:30:37.130 GMT
Shell: Shell divests U.S. onshore gas assets in Pinedale and Hanesville, adds
acreage in Marcellus and Utica
HOUSTON, 14 August 2014 - Royal Dutch Shell plc ("Shell") announces today two
separate transactions whereby the company will exit its Pinedale and
Haynesville onshore gas assets in exchange for approximately $2.1 billion of
cash, plus additional acreage in the Marcellus and Utica Shale areas in
Pennsylvania.
In one agreement with Ultra Petroleum, Shell will acquire 155,000 net acres in
the Marcellus and Utica Shale areas in Pennsylvania and receive a cash payment
of $0.925 billion from Ultra in exchange for 100 percent of Shell's Pinedale
asset in Wyoming, including associated gathering and processing contracts,
subject to closing.
In a separate agreement with Vine Oil & Gas LP and its partner Blackstone,
Shell has agreed to sell 100 percent of its Haynesville asset in Louisiana,
including associated field facilities and infrastructure for $1.2 billion in
cash, subject to closing.
"We continue to restructure and focus our North America shale oil and gas
portfolio to deliver the most value in the longer term. With this announcement
we are adding highly attractive exploration acreage, where we have impressive
well results in the Utica, and divesting our more mature, Pinedale and
Haynesville dry gas positions," said Marvin Odum, Shell's Upstream Americas
Director.
The Shell net production from Pinedale in the second quarter 2014 was 190
million standard cubic feet per day (mmscf/d) of dry gas (32 thousand barrels
of oil equivalent per day (kboe/d)). During the first half of 2014, Ultra's
net production from the assets Shell is acquiring in Pennsylvania averaged 109
mmscf/d (19 kboe/d).
"We first entered the Pinedale Anticline in 2001, and I am proud of our
operational excellence, community engagement, and leadership in responsible
energy development over that time," said Odum.
Shell's Pinedale asset (which includes 19,000 net acres of leasehold interest,
1,108 gross wells and associated facilities, and an average of 0.7 percent
overriding royalty interest in 11,500 acres) will be exchanged for cash and
Ultra's 100 percent interest in the Marshlands area (63,000 net acres) as well
as its entire interest (92,000 net acres) in the Tioga Area of Mutual Interest
(AMI), an unincorporated joint venture with Shell. After completion of this
transaction, Shell will have a 100 percent interest in the Tioga AMI. The
agreement is effective 1 April 2014, and is expected to close this year.
Shell's Haynesville asset includes 107,000 net acres in in north Louisiana.
The transaction includes 418 producing wells, 193 of them operated by Shell.
As of 1 July 2014, the gross production from the Haynesville asset was
approximately 700 mmscf/d of dry gas, with Shell's net working interest share
at approximately 250 mmscf/d (43 kboe/d). The agreement is effective 1 July
2014, and is expected to close in the fourth quarter of this year.
"We very much appreciate the support we have had in north Louisiana, and we
will continue to operate in the state, as we have for decades, through our
downstream, retail, midstream, and New Orleans-based deep-water operations,"
said Odum.
# # #
INQUIRIES:
Investor Relations
North America: +1 832 337 2034
International: +31 (0) 70 377 4540
Media
Shell US Media Relations: +1 713 241 4544
Shell International Media Relations: +44 (0) 207 934 5550
Cautionary Note
The companies in which Royal Dutch Shell plc directly and indirectly owns
investments are separate entities. In this release "Shell", "Shell group" and
"Royal Dutch Shell" are sometimes used for convenience where references are
made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the
words "we", "us" and "our" are also used to refer to subsidiaries in general
or to those who work for them. These expressions are also used where no useful
purpose is served by identifying the particular company or companies.
''Subsidiaries'', "Shell subsidiaries" and "Shell companies" as used in this
release refer to companies over which Royal Dutch Shell plc either directly
or indirectly has control. Companies over which Shell has joint control are
generally referred to "joint ventures" and companies over which Shell has
significant influence but neither control nor joint control are referred to as
"associates". In this release, joint ventures and associates may also be
referred to as "equity-accounted investments". The term "Shell interest" is
used for convenience to indicate the direct and/or indirect ownership interest
held by Shell in a venture, partnership or company, after exclusion of all
third-party interest.
This release contains forward-looking statements concerning the financial
condition, results of operations and businesses of Royal Dutch Shell. All
statements other than statements of historical fact are, or may be deemed to
be, forward-looking statements. Forward-looking statements are statements of
future expectations that are based on management's current expectations and
assumptions and involve known and unknown risks and uncertainties that could
cause actual results, performance or events to differ materially from those
expressed or implied in these statements. Forward-looking statements include,
among other things, statements concerning the potential exposure of Royal
Dutch Shell to market risks and statements expressing management's
expectations, beliefs, estimates, forecasts, projections and assumptions.
These forward-looking statements are identified by their use of terms and
phrases such as ''anticipate'', ''believe'', ''could'', ''estimate'',
''expect'', ''goals'', ''intend'', ''may'', ''objectives'', ''outlook'',
''plan'', ''probably'', ''project'', ''risks'', "schedule", ''seek'',
''should'', ''target'', ''will'' and similar terms and phrases. There are a
number of factors that could affect the future operations of Royal Dutch Shell
and could cause those results to differ materially from those expressed in the
forward-looking statements included in this release, including (without
limitation): (a) price fluctuations in crude oil and natural gas; (b) changes
in demand for Shell's products; (c) currency fluctuations; (d) drilling and
production results; (e) reserves estimates; (f) loss of market share and
industry competition; (g) environmental and physical risks; (h) risks
associated with the identification of suitable potential acquisition
properties and targets, and successful negotiation and completion of such
transactions; (i) the risk of doing business in developing countries and
countries subject to international sanctions; (j) legislative, fiscal and
regulatory developments including regulatory measures addressing climate
change; (k) economic and financial market conditions in various countries and
regions; (l) political risks, including the risks of expropriation and
renegotiation of the terms of contracts with governmental entities, delays or
advancements in the approval of projects and delays in the reimbursement for
shared costs; and (m) changes in trading conditions. All forward-looking
statements contained in this release are expressly qualified in their entirety
by the cautionary statements contained or referred to in this section. Readers
should not place undue reliance on forward-looking statements. Additional risk
factors that may affect future results are contained in Royal Dutch Shell's
20-F for the year ended December 31, 2013 (available at www.shell.com/investor
and www.sec.gov). These risk factors also expressly qualify all forward
looking statements contained in this release and should be considered by the
reader. Each forward-looking statement speaks only as of the date of this
release, 14 August, 2014. Neither Royal Dutch Shell plc nor any of its
subsidiaries undertake any obligation to publicly update or revise any
forward-looking statement as a result of new information, future events or
other information. In light of these risks, results could differ materially
from those stated, implied or inferred from the forward-looking statements
contained in this release.
We may have used certain terms, such as resources, in this release that United
States Securities and Exchange Commission (SEC) strictly prohibits us from
including in our filings with the SEC. U.S. Investors are urged to consider
closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC
website www.sec.gov. You can also obtain these forms from the SEC by calling
1-800-SEC-0330.