SM Energy announced an agreement to sell Marcellus Shale assets to Endeavor International for $80 million. The deal includes 42,000 acres and associated wells and pipeline assets. The SM acreage was located in McKean County and Potter County in Pennsylvania. This marks the third deal in two months that will help SM Energy finance its development efforts in the Eagle Ford Shale. Consider this a positive sign for the Eagle Ford.
“SM Energy Company (SM) announces it has entered into agreements with a subsidiary of Endeavour International Corporation (END) -2.04% to sell its Marcellus shale assets in McKean and Potter Counties, Pennsylvania for total cash proceeds of approximately $80 million. The transactions include the Company’s entire leasehold position in the play of approximately 42,000 net acres as well as associated pipeline assets.”"Tony Best, President and CEO, remarked, ‘I am pleased to announce we have reached an agreement to divest our Marcellus shale position. We continuously look to high-grade our portfolio through the divestiture of non-core assets, and this transaction is yet another example of this process. Year to date, we have closed or entered into transactions in excess of $1 billion that will be used to fund the development of higher value assets in our portfolio while preserving the strength of our balance sheet.’ “
Read the full press release at Originally published at MarketWatch.com