Japan based trading company Sumitomo Corp (8053) has sold its entire stake in Marcellus Gas Project based in the United States. The company confirmed the report however it failed to disclose how much it fetched from the sale and the buyer of the stake.
“We have sold our stake as it is difficult to predict future prices of natural gas, and as it may take a long time to gain profit contribution from the project and its development may not proceed as planned even after the prices recover,” said the company’s spokesperson.
A decade ago, the company purchased 30% stake in the project from Rex Energy Corp (REXX) the remaining 70% stake is owned and managed by PennEnergy Resources. Two years ago Rex Energy ran into bankruptcy.