Repsol SA is bolting on acreage in the Marcellus Shale after successfully bidding for 43,000 net acres in Northeast Pennsylvania in a bankruptcy auction.
The Spanish energy company has agreed to pay $222 million, including $2 million in debt, for Rockdale Marcellus LLC’s assets in Tioga, Lycoming and Bradford counties, according to court documents. The sale has been approved by the U.S. Bankruptcy Court for the Western District of Pennsylvania.
Rockdale, which was formed through the acquisition of Shell plc’s Marcellus properties in northern Pennsylvania in 2017, filed for bankruptcy protection in September. Repsol has also reached a deal with UGI Energy Services LLC for gathering services on the properties, resolving a legal dispute between Rockdale and UGI.
The 48,000 gross acres acquired in the sale produced 110 MMcf/d early last year, according to Rockdale. Repsol has factored the Marcellus into its 2021-2025 strategy, with plans to spend $600 million annually.
Prior to the Rockdale acquisition, Repsol held 171,000 net acres in the Marcellus, mainly in Bradford, Susquehanna and Tioga counties. The company has focused on driving free cash flow and generating more value from its global exploration and production portfolio. It’s also focused on narrowing the portfolio by concentrating assets in key areas such as the Marcellus.
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