Quest picks up 67,000 acres inside the Marcellus fairway and 11,000 outside with the purchase of privately held PetroEdge of West Virginia. Quest also completed a previously announced farm-out agreement with a private company for 30,000 Marcellus acres in Potter Co., PA. The $140mm price tag includes the following PetroEdge assets:
- Estimated proved reserves of 99.6 Bcfe and PV-10 value of $258 million as of May 1, 2008 based off of May 1, 2008 pricing of $10.14 per MMBtu for natural gas and $105.89 per barrel (bbl) for oil.
- Estimated proved, probable and possible (3P) reserves of 650 to 675 Bcfe
- 100% operated with an average net revenue interest of 81%
- Current net production of approximately 3.3 Mmcfed, including 46 bbls per day of crude oil
- Approximately 95% of total reserves are natural gas
- Natural gas BTU content ranging from 1,160 to 1,406
- Average basis premium in Appalachia of approximately $0.30 per Mcfe over the past three years.
Full Story at http://biz.yahoo.com/iw/080610/0405197.html
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