Shell Sells Rights to Shale Gas for $US2.1b

Friday, August 15th, 2014
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Royal Dutch Shell says it has agreed to sell drilling rights in shale formations in Louisiana and Wyoming for $US2.1 billion ($A2.3 billion) in two transactions.

Shell also said on Thursday that it will also receive drilling rights to land in Ohio and Pennsylvania.

Shell is working to focus its onshore US drilling program on a few of the more prolific formations in an effort to boost profitability.

The company wrote down the value of its shale acreage in the US by $US2.1 billion last year amid lower natural gas prices.

Shell will sell its Pinedale acreage in Wyoming to Ultra Petroleum for $US925 million and 155,000 acres in the Utica and Marcellus shale formations in Ohio and Pennsylvania.

It will sell its Haynesville acreage in Louisiana Vine Oil and gas and Blackstone for $US1.2 billion.

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