Trans Energy, Inc. (OTCQB: TENG) is a pure play Marcellus Shale exploration and development company operating in the wet-gas window of West Virginia.
On October 2, 2013, TENG announced the divestiture of 1,163 net acres, two pad sites and one uncompleted horizontal Marcellus well, all in Tyler County, West Virginia, to Antero Resources (future ticker: AR) for approximately $11.2 million. The transaction is expected to close before year end 2013, pending satisfactory title diligence by the buyer.
TENG believes allocating the proceeds from the sale toward development of its core acreage positions in Marshall, Wetzel and Marion Counties will further enhance the value of its positions in those counties, thereby increasing shareholder value.
OAG360 notes the acreage sold represents approximately six percent of Trans Energy’s total net acreage position targeting the Marcellus Shale. Pro forma the sale, TENG owns a combined 17,500 net acres in three counties.
The raw per acre sale price was $9,630 per acre. According to PLS, since March 2012, approximately 39 Utica and Marcellus deals have been completed with an average price of $5,067 per acre. Using the average price per acre paid in the last 39 Utica/Marcellus deals and the $9,630 per acre TENG received for Tyler County, TENG’s remaining 17,500 net acres could be worth between $88.7 million and $168.5 million. At the time of publishing, TENG’s market capitalization was $39 million.
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