Rice Energy bids on Marcellus, Utica acreage

OREANDA-NEWS. April 14, 2016. Oil and natural gas producer Rice Energy has bid on some Marcellus and Utica acreage owned by coal company Alpha Natural Resources, which filed for bankruptcy protection last year.

The natural gas producer has offered \\$200mn in cash for the assets in Greene county, Pennsylvania, as part of what's called a stalking horse bid — an initial bid on a bankrupt company's assets from a buyer chosen by the company out of a pool of bidders.

Under the agreement, Rice Energy would acquire leasehold interest in about 27,400 Marcellus acres, plus an additional 3,200 acres would be leased to Rice Energy. The acreage includes rights to the deep Utica shale on 23,500 acres.

The acreage is adjacent to Rice Energy's existing position in the Marcellus and increases the company's footprint there by 37pc.

Alpha Natural Resources filed for bankruptcy protection on 3 August. Through the chapter 11 proceeding, it is conducting a sale of assets, which means Rice Energy's bid is subject to court approval.