Denver, Co.-based Antero Resources is increasing its Marcellus Shale portfolio with teh acquisition of a 7% overriding royalty interest from CONSOL Energy on 115,647 net acres located in nine counties in southwestern Pennsylvania and north central West Virginia for $193 million. 

Just as Marcellus Shale volumes increase, the acquisition increases Antero’s production by 12 MMcfpd ($16,083 per flowing Mcfepd) and proved reserves by 60 bcfe ($3.22 per Mcfe) free from incremental lease operating costs, noted Global Hunter Securities (GHS) in a September 26 note to investors.

Antero now holds approximately 200,000 net acres in the Marcellus play with net production increasing 36% from six additional wells since the company announced 2Q11 earnings to approximately 181 MMcfpd from 53 horizontal wells.

GHS views the all-cash transaction as a positive for Antero as the company has increased its leasehold in the liquids rich portion of the Marcellus play. “Results have continued to improve as operators have moved further south into West Virginia. A flurry of deals could be further seen in the Marcellus as operators look to add additional exposure during a suppressed natural gas market,” continued GHS analysts.