Seneca Resources recently completed an acquisition of Marcellus Shale properties from EOG Resources earlier this month for a total of $23 million. Prior to the acquisition, Seneca and EOG had a JV in the Covington Township area of Tioga County dating back to 2006. The completion of this acquisition means Seneca will receive this particular area of Tioga County and EOG will remain as an operator of the JV acreage for acreage west of Tioga County.
The transaction will add approximately 42 Bcfe of proved natural gas reserves. Seneca is hoping that the acquisition will result in an increase of 65 to 75 Bcfe of natural gas production over the 2011 fiscal year.
Drillinginfo and HPDI have recently acquired pre-2010 historical PA data. I have included a map of the explicit Marcellus producers since 2008 around Tioga County. This production is only through 2009. The best wells here are the Chesapeake Bradford County wells, with one well producing over 2Bcf in 2 years.
This sale falls in line with the overall corporate strategy of EOG in dealing with unconventionals, the divestiture of certain gas assets in order to fund the development of their massive liquids-rich inventory (EF, Bakken, Niobrara etc).
Keep checking back for more Marcellus updates and look into our Unconventional Updates on the DrillingInfo site.
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