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- Mitsui & Co., Ltd.
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Main Contents
Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) is pleased to announce that Mitsui E&P USA LLC ("MEPUSA"), a subsidiary established in the U.S. by Mitsui and Mitsui Oil Exploration Co., Ltd., ("MOECO", a subsidiary of Mitsui in which Mitsui has 74.26% equity interest, Head Office: Tokyo, President and CEO Mitsuo Hidaka) has reached an agreement with Alta Resources Development, LLC ("Alta") to sell a part of MEPUSA's interest in the Marcellus shale gas project in the state of Pennsylvania, U.S.A. for $207 million.
MEPUSA's share of current daily production in the area to be sold is approximately 70 million cubic feet, which represents approximately 20% of MEPUSA's total daily production in the overall Marcellus shale gas project.
Energy and mineral resources sector continues to be one of Mitsui's core business areas. Mitsui's upstream energy business aims to achieve a portfolio of high quality low cost reserves and will continue to strengthen the competitiveness of its earnings base. This asset divesture will enable MEPUSA to focus its future investment into the more productive area where it will retain its working interest, improve its profitability and contribute to enhancing the value of Mitsui's portfolio.
Outline of Agreement
| Buyer | Alta |
|---|---|
| Seller | MEPUSA |
| Sold Interest | Approximately 14.3% working interest in part of the Marcellus shale gas project |
| Consideration | $207 million |
Overview of Marcellus shale gas project
| Location | The State of Pennsylvania, U.S.A. |
|---|---|
| Daily Production (MEPUSA's share, prior to this sale) |
Approximately 300 million cubic feet (Approximately 50,000 Barrels of Oil Equivalent) |
Notice:
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.