Energy Company drilling in Lufkin selling East Texas assets for $218 million

Energy Company drilling in Lufkin selling East Texas assets for $218 million
SWN plans to sell East Texas assets in joint deal for $218 million.
SWN plans to sell East Texas assets in joint deal for $218 million.
Entrance to SWN site near Angelina River reamins flooded.
Entrance to SWN site near Angelina River reamins flooded.

LUFKIN, TX (KTRE) - While probing East Texas roadways of East Texas for flooding conditions Monday, East Texas News noticed flooding just south of the Angelina River Bridge, including a pathway to a natural gas drilling site just off Highway 59 north.

The road leads to a natural gas drilling well owned and/or operated by Southwestern Energy Company (SWN). The flood water has receded but the road was still underwater as far as the eye could see.

Southwestern Energy has its corporate headquarters in Spring, Texas, just north of Houston.

It has regional offices in Arkansas and Pennsylvania.

Christina Fowler, a communications advisor for SWN, said despite the flooding, their crews could access the wellhead.

“We are monitoring the nearby tanks,” Fowler said by phone. “But there has been no impact due to the rains.”

While waiting for a return call from SWN about the flooded road, KTRE discovered that the energy company struck a deal on March 20th to sell its assets in East Texas.

The sale is to a private buyer for $218 million. It includes Southwestern's conventional oil and gas assets in East Texas and the Arkoma Basin.

Fowler said she couldn't provide specific locations of the East Texas properties or the name of the private buyer.

“Once the sale is finalized, that information should be available,” Fowler said.

As for the exact location(s) of the East Texas assets, neither Fowler nor SWN's website had a list of where in East Texas it operates. This includes the 510-acre gas production site on the west side of Highway 69 near the Angelina River.

As for the financial impact of the company's pulling out of East Texas, we'll have to wait and see. The deal is expected to be finalized by the second quarter of 2015.

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