The Perth-based midcap told the market this morning that it had agreed to transfer its 30% working interest in the Jefferson-McLeod project, in east Texas, to co-venturer TR Energy.

In return, Marion will receive a further 7.5% stake in the Clear Creek project and 10.65% of the Helper project, both of which are in Utah.

As a result, Marion will own 100% of Clear Creek and its proved and probable (2P) reserves here will increase by 18Bcf to 236Bcf.

Likewise, it will also own 59.375% of the Helper Project, lifting its reserves 4Bcf to 23Bcf.

The asset-swap will see Marion's total 2P reserves increase by about 22Bcf to 286Bcf.

The company said the transaction reflected its decision to move out of Texas to instead focus on its core properties in Utah and Oklahoma, where it is operator.

"Marion had great hopes for the East Texas properties in its initial strategy, but a shortage of equipment and services and a major shift of focus towards the Utah projects, especially Clear Creek, caused Marion to look for strategic alternatives," the company said.

"East Texas was the only project in Marion's project portfolio in which it was not the operator."

Marion said it was confident the asset swap was value accretive in terms of 2P reserves and the significantly higher upside potential, as well as the higher level of ownership in its projects.

"The post swap operational and asset focus will make it easier for the investment community to value the company and assist in positioning the company to attract the interest of the broader financial and industry community," the company said.