Eclipse Resources Corporation (NYSE:ECR) (the “Company” or “Eclipse Resources”) announced today that it has completed the sale of approximately 9,900 net acres in eastern Noble County and western Monroe County, Ohio for approximately $63.8 million to an undisclosed buyer. The assets sold were predominately undeveloped acres in the Utica Shale formation and included de minimis net production of approximately 1,000 Mcfe per day. Proceeds from the sale will be used to fund operations and for general corporate purposes.
Benjamin W. Hulburt, Chairman, President & CEO commenting on the sale, “We are excited to complete this non-core acreage divestment that further enhances our liquidity as we prepare to accelerate our growth in the coming year. The acreage we divested was not in our near-term drilling program, did not permit us to drill wells with lateral lengths that meet our internal planning requirements, and would have required future lease extension payments.
We are currently in the process of completing our 2017 capital expenditure plan, which we expect to release early in the first quarter. In addition to completing this planned divestment, we have taken advantage of the recent favorable move in natural gas prices to continue to add to our hedging portfolio for both 2017 and 2018. With this increased hedge position coupled with the additional cash from this divestiture, we are increasingly confident in our ability to fund the addition of a second operated rig during 2017 without overburdening our balance sheet.”