[THE INVESTOR] SK Innovation said on March 21 that its wholly owned US subsidiary SK E&P America will buy a 100 percent stake in Longfellow Nemaha, a US gas exploration firm, in the latest move to boost its shale gas exploration projects in North America.

SK E&P America has entered into a definitive agreement to “acquire all of the outstanding membership interests of Longfellow Nemaha” in a transaction set to close in the second quarter of 2018.

“SK initially invested in the growing US oil & gas upstream market in 2014, and through this platform we continue to build a balanced portfolio of conventional and unconventional assets,” Kim Tae-won, President of SK E&P America said.

“This transaction leverages our operational expertise in the region and represents a significant step towards realizing SK’s vision of being a top-tier operator in the US lower 48 states and beyond.”

The announcement came a day after SK Innovation said in a regulatory filing that it will invest 485.3 billion won (US$453 million) in SK E&P America for the acquisition of Longfellow Nemaha as well as oil exploration projects in the United States.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)