Akron’s Pin Oak Energy Partners Buys Shale Assets in Ohio and Pennsylvania
February 7, 2018
Crains Cleveland Business. Akron-based oil and gas producer Pin Oak Energy Partners LLC announced on Wednesday, Feb. 8, that it has closed on a series of transactions with multiple sellers to allow it to acquire more shale assets in Ohio and Pennsylvania — including nearly 70,000 acres for Utica/Point Pleasant development across both states and 33 conventional wells in Ohio that produce from the Knox Group of geologic formations.
In addition, Pin Oak acquired two taps into Tennessee Gas Pipeline in northern Pennsylvania and associated gas processing capabilities, according to a news release.
Financial terms of the acquisitions were not disclosed.
“These acquisitions add a significant development component to our existing acreage position along with expanded midstream assets and capabilities in a key growth area for Pin Oak Energy,” CEO Christopher Halvorson said in the release. “This is a pivotal moment for our Company as we materially add acreage to our future development position.”
The transactions include leasehold acreage in Ohio’s Mahoning and Trumbull counties, and Mercer County in Pennsylvania, all of which are part of Pin Oak Energy’s northern Utica/Point Pleasant position, the release said. Adding to the company’s activities in the southern Ohio Utica/Pleasant Point is leasehold acreage in eastern Guernsey County.
Associated pipeline rights-of-way were included in the deals, the company said.
Pin Oak added to its midstream assets with the addition of processing facilities and multiple taps into interstate pipelines across its northern Pennsylvania position, the release said. The two taps into the Tennessee Gas Pipeline each have the capability of up to 100 million cubic feet per day.
Another tap in Elk County, Pa., delivers into one of National Fuel Gas Supply Corp.’s interstate pipelines, Pin Oak said.
The purchase of the 33 vertical wells in southern Ohio, which have an average producing depth of 8,500 feet, includes assets, additional offset drilling locations and deep acreage primarily in eastern Muskingum County, Ohio.
“These acquisitions provide Pin Oak Energy with greater opportunities and offer us optionality that we believe will be beneficial to the Company for years to come,” Mark Van Tyne, Pin Oak chief business development officer, said in a statement. “We are very pleased with our continuing efforts of executing our growth strategy in both the conventional and unconventional arenas.”
In October, Pin Oak purchased shale assets in four Pennsylvania counties from Seneca Resources Corp. of Houston. That included 14 producing Marcellus Shale wells and two producing Utica/Point Pleasant Shale wells across about 4,300 acres.
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