Velocity Energy Inc. announced the purchase of producing natural gas wells and partially developed acreage in the Appalachian region in the Northeastern United States. Velocity Energy Inc. purchased the assets from a private company and did not disclose the purchase price.
Velocity Energy Inc. said that the sale included 13,500 net acres of oil and gas properties, which are currently producing 2 million cubic feet per day of natural gas from several shale formations. These formations include the Ravencliff, Maxton, Big Lime, Berea, Gordon and the Cleveland and Huron Shales. The company said that the purchase would give it 60 future locations on which to drill for future reserves.
Don Vandenberg, the President of Velocity Energy Inc. said, “We have been pursuing this acquisition and other Appalachian acquisitions as we believe that the long history of successful exploitation of Devonian Shale and other shale horizons found throughout the region in Appalachia is the best place to position the Company, as a profitable aggregator, of long-lived oil and gas reserves.”
Velocity Energy Inc was formerly known as Sonterra Resources, Inc. and in March 2009 changed its name to Velocity Energy Inc.