Seneca Resources Corporation, a subsidiary of National Fuel Gas Company, today announced its acquisition of oil and gas properties in the Covington Township area of Tioga County, PA, from EOG Resources, Inc. for US$ 23 million. The properties are producing natural gas from the Marcellus Shale and are also prospective for additional Marcellus reserves.
EOG had contributed this acreage to the Marcellus joint venture between Seneca and EOG that was formed in 2006. Seneca has been the operating partner on this portion of the joint venture acreage and has acquired EOG’s interest in these properties, continuing to act as the operator of all existing and future wells. The Seneca/EOG joint venture will continue, and EOG will continue to act as operator in the joint venture acreage west of Tioga County. As a result of this transaction, Seneca will add approximately 42 billion ft3 equivalent of proved natural gas reserves.
“The acquisition of EOG’s position in our Tioga County operations is another step in our Marcellus Shale growth plan,” said Matthew D. Cabell, President of Seneca. “This transaction will have an immediate positive impact on our production and proved reserves, and it provides us with additional upside in an area where we continue to have great success.”