LSB Industries buys natural gas interests

LSB Industries on Wednesday bought a stake in natural gas wells and leases in Pennsylvania's Marcellus Shale.

 
| Published: November 1, 2012    Comment on this article Leave a comment

In brief

LSB buys gas interests

A subsidiary of LSB Industries has purchased a stake in natural gas wells and leases in Pennsylvania's Marcellus Shale for $49 million, the Oklahoma City manufacturing and marketing company said Wednesday.

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The deal includes a 7.7 percent average working interest in 14 proved producing wells, seven proved nonproducing wells and 36 proved undeveloped future drilling locations in Wyoming County. The company said it plans to spend $38 million to $40 million through 2015 to develop the area.

LSB's chemical business subsidiary bought the natural gas wells as a hedge against potential natural gas price increases, the company said.

“This acquisition includes potential gas reserves equal to approximately 20 percent of our current annual natural gas requirements over the next eight years at the estimated present value cost of approximately $2.30 per mcf (thousand cubic feet), including development and operating costs,” said Jack E. Golsen, LSB's chairman and CEO.

ADAM WILMOTH, ENERGY EDITOR





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