Trans Energy, Inc. has signed an agreement to sell Marcellus assets in Wetzel County, West Virginia, for approximately $71.3 million in net proceeds, subject to adjustments to be determined at closing.
The divestiture consists of 5,159 net acres and twelve producing Marcellus wells. The acreage represents approximately one-third of Trans Energy's total net acreage position targeting the Marcellus Shale. The transaction is expected to close approximately ninety days following the signing of the agreement, pending satisfactory title and environmental diligence by the buyer and subject to the satisfaction of certain closing conditions specified in the agreement.
The company expects to receive approximately $47.0 million at closing, net of funds used to repurchase assets that are to be included in the sale, with any incremental funds expected to be received upon the successful resolution of certain quiet title actions that are currently ongoing and the release of funds that will be held in escrow for a time following the closing.