Triana Joins Marathon to Drill Up To 350 Wells in Marcellus
Charleston Gazette
3 February 2011
By Eric Eyre
CHARLESTON, W.Va. -- Charleston-based Triana Energy and Marathon Oil
have joined forces to drill up to 350 large-scale natural gas wells on
82,000 acres in northern West Virginia and southwestern Pennsylvania.
Under the agreement, Triana will drill four horizontal wells this year,
and another 132 wells in the coming years -- all in the Marcellus Shale
formation. Full development of the property could require 350 wells,
Triana said.
"We have conducted an extensive geologic assessment of this area, and
our evaluation is supported by the activity of our experienced
operators," said Triana President Henry Harmon. "We believe this
acreage holds exceptional opportunities for large-scale Marcellus Shale
development."
The companies did not disclose the project's potential investment.
Thursday's transaction is the latest in a series of acquisitions and
partnerships announced by Triana as the company moves toward becoming
an industry leader for Marcellus drilling in Pennsylvania and West
Virginia. Triana already has projects in Taylor and Lewis counties in
West Virginia, and in Potter, Clearfield and McKean counties in
Pennsylvania.
Triana said the partnership with Marathon "brings together two
experienced operators and a set of high potential mineral assets." The
two companies have formed a wholly owned subsidiary for the joint
project.
"We are delighted to join forces with an outstanding company like
Marathon," Harmon said. "Our mutual commitment to environmental, health
and safety stewardship is a key to the success of this joint venture."
Triana has about 50 employees. The company was founded in 2006 by
executives of Triana Holdings, which owned and operated Columbia
Natural Resources before its sale to Chesapeake Energy in 2005.
Four years later, Morgan Stanley Private Equity invested in Triana,
allowing the company to expand its operations in the Marcellus Shale, a
natural gas field that stretches from New York to West Virginia.
"We're very pleased with the progress that this latest acquisition
represents toward our shared goal of building yet another successful
energy company with the Triana team," said John Moon, Morgan Stanley's
managing director.
Triana Energy is an independent, privately held oil and gas exploration
and production company headquartered in Charleston. Marathon Oil, which
is based in Houston, is the nation's fourth-largest oil company and
fifth-largest refiner.
In Jan. 2010, Triana purchased 20,000 acres of mineral rights in
Pennsylvania. The company plans to drill 100 wells on 27 drilling sites
on the properties.
Natural gas production in West Virginia is expected to set a record
next year -- mostly because of expanded drilling in the Marcellus
formation
Between 2002 and 2008, West Virginia led the nation in the number of
gas drilling permits issued. More than 2,800 permits were issued for
new drilling in 45 of the state's 55 counties.
Last week, a West Virginia University study predicted that development
of the Marcellus Shale could create more than 20,000 new jobs and pump
billions of dollars into West Virginia's economy during the next few
years.
Reach Eric Eyre at erice...@wvgazette.com or 304-348-4869.