Regal Group International: Chevron Corp. gets a slice of Marcellus Shale – buys Atlas Energy.

PRLog (Press Release) - Nov. 9, 2010 - Regal Group International has learned that the second-biggest U.S. oil company, Chevron Corp., has agreed to buy Atlas Energy Inc. for $3.2 billion in cash, thereby giving the oil giant a stake in the natural gas-rich Marcellus Shale field in Pennsylvania.

Under the terms of the deal shareholders will receive $38.25 in cash as well as units of an Atlas pipeline affiliate, for a total of $43.34 per share, 37% up on the November 8 closing price, the Moon Township, Pennsylvania-based Atlas Energy announced recently.

According to the two firms the deal is worth $4.3 billion including assumed debt and if completed would be the third-biggest deal for the San Ramon, California based Chevron and it’s largest since its acquisition of Unocal Corp. in 2006.

George L Kirkland, vice chairman at Chevron told Regal Group International that Atlas offered “one of the premier acreage positions in the prolific Marcellus” field.

“The high quality resource, competitive cost structure in the Marcellus, strong growth potential of the asset base and its proximity to premier natural gas markets make this targeted acquisition a compelling investment for Chevron,” Kirkland said.

The Marcellus fields stretch from Pennsylvania into New York, West Virginia and Ohio and are estimated to hold around 262 trillion cubic feet of natural gas, sufficient to meet total U.S. requirements for a decade.

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