The assets are producing around 82 million net cubic feet a day (mmcfd) of natural gas as of June.
Warren’s independent petroleum engineering company Netherland, Sewell & Associates estimates that net proved reserves, as of 1 July, total 208.3 billion cubic feet, of which 55% are proved developed.
The transaction is expected to increase Warren’s pro forma net production by over 200% to around 118 million cubic feet equivalent a day (mmcfed) of gas from 36 mmcfed, while the company’s pro forma net proved reserves will grow by more than 100% to 410.8 billion cubic feet equivalent (bcfe) from 202.5 bcfe.
Warren chairman and CEO Philip Epstein said, "We are acquiring some of the most economic wells in the ‘core-of-the-core’ Marcellus, directly south of Cabot’s position."
"Our technical teams are optimistic about the potential to identify additional reserves, both in the Lower and Upper Marcellus, and we believe that we can achieve strong production results in both of these zones," Epstein added.
The management personnel from Citrus will join Warren after completion of the transaction.
Citrus president and co-founder Lance Peterson and other employees will join Warren’s board.
