Marcellus Shale Gas Well Shares

Dilliner, PA (Greene County)

Marcellus Shale Gas Well Shares

Asking Price:$150,000

Cash Flow:N/A

Gross Revenue:N/A

EBITDA:N/A

FF&E:N/A

Inventory:N/A

Established:2011

Marcellus Shale Gas Well Shares

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Business Description

The Managing Partner (MP) of this LLC invested $650000 in 2011. Vantage Energy is now the owner and producer all of the operations owned by the MP. The MP has received substantial depreciation against income which offset personal income for the last 4 years. There are losses to carry forward for the purchaser and the opportunity for substantial growth and profit when natural gas prices increase.
Vantage Energy: had it filed its anticipated $400 million IPO, bizjournal.com’s Paul J. Gough, in a September 2014 article, their suggested market cap has a potential to reach 1.95 billion. Rice Energy, Vantage Energy’s nearest competitor in size and geographic location, has a market cap of 2.56 billion as of 8/31/15 and a share price of $19.45. Per the same article, Vantage is 312 on the 2014 Pittsburgh Business Times Book of Lists of the biggest natural gas companies operation in southwestern PA. A little less than half of its net acreage is in the Marcellus Shale and in Greene County, 51,771 net acres compared to 38,347 net acres in the Barnett Shale in Texas.
The firm has 49 horizontal wells in the Marcellus Shale with 18 in production through the end of 2014. Production has grown from 1.9 million cubic feet per day in 2011 to 30.3 million cubic feet per day in March of 2014. Further, they have identified 1,074 drilling locations, 423 in the Marcellus Shale and 312 in the Upper Devonian, with the rest in the Barnett Shale.
This company is still very much in the “Growth Mode” and despite exploring the possibility of being acquired, they still have many favorable geographical location which should be very attractive to a larger competitor. It is the untapped potential which investors will be buying and anticipating growth as this management team is strong and looking to become stronger by partnering up with a bigger player.

Detailed Information

Employees:
0
Facilities:
Natural gas wells located in Greene County Pennsylvania, one of the most productive areas of the Marcellus Shale region.
Competition:
See Summary
Growth & Expansion:
Gas prices are low and expected to rise in the future which will increase owner value and income.The production company, Vantage Energy, is well positioned to increase market share and is presently drilling an additional 7 wells in Greene County, one of the most productive areas of Marcellus Shale region. New Managing Partner of LLC will have the right of first refusal to purchase shares in new production wells.
Reason for Selling:
Managing Partner wants to sell corporation and reinvest in an active business.
Business Website:
http://www.vantageenergy.com

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Richard B. Ames

Business Listed By:
Richard B. Ames

RB AMES CO

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