December 27, 2013
Denver-Based Oil and Natural Gas Producer to Drill 25 Wells with Chinese Energy Company Over the Next 18 Months.
Denver, Colo. – Officials with Energy Corporation of America (ECA) and China Shenhua Energy Company subsidiary Shenhua America Holdings Corporation (Shenhua) today announced that the two companies have entered into a 50/50 joint venture to develop 25 natural gas wells in Greene County, PA over the next 18 months.
Founded in 1963, ECA actively pursues the exploration, extraction, production and transportation of natural gas and oil, both in the United States and around the world.
Shenhua is a Chinese state-owned enterprise and the largest coal company in the world.
According to ECA CEO John Mork, Shenhua will contribute the first $90 million towards drilling the wells and ECA will be the operator of the properties. Any remaining capital expenditures will be split evenly between the two companies.
Mork said, “It is only fitting for these operations to take place in Greene County. This area of Appalachia has been at the center of ECA’s Marcellus development, as well as a hotbed of Marcellus development.” He continued, “We have an outstanding track record there, an excellent reputation, respect from local community members and leaders, and extensive experience working in the Marcellus. And – we are experts in shale gas development. We are very pleased to be working with Shenhua on this joint venture and this is only the beginning of what, I hope, will be a long, mutually-beneficial working relationship.”