In 2 Years, Pin Oak Becomes Major Player
March 2, 2018
Youngstown Business Journal. Akron-based Pin Oak Energy Partners LLC is fast becoming one of the more aggressive oil and gas companies doing business in the Utica and Marcellus shale plays in Ohio and Pennsylvania.
Since it was established in 2015, the privately held company has struck deals with some of the biggest players in the industry, acquiring both conventional and unconventional wells, leases and midstream assets across the Appalachian Basin.
To date, the company says it operates 393 of these wells, 22 miles of midstream infrastructure, and holds 119,000 acres in the Utica and Marcellus.
Pin Oak’s two principals, CEO Christopher Halvorson and Chief Business Development Officer Mark Van Tyne, are veterans of the oil and gas industry and previously worked for Cleveland-based AB Resources.
In July, Pin Oak acquired 9,300 acres of EQT Corp.’s non-core assets in Guernsey, Muskingum, and Columbiana counties in Ohio. The transaction encompassed the purchase of eight Utica wells and four miles of gathering lines. Six of the eight Utica wells are in production, while two others are optional drilled, uncompleted wells. The wells have daily production of 1.9 million cubic feet per day of natural gas and boast 47% liquid gas.
“This deal fits our strategy of acquiring cash-flowing assets with upside potential, expands our existing operating footprint, and highlights Pin Oak Energy’s ability to transact quickly with our industry partners,” Halvorson said in announcing the transaction.
Then, in August, Pin Oak announced another round of acquisitions from an “undisclosed seller” for oil and gas assets in Mahoning and Trumbull counties in Ohio, and Mercer, Venango and Crawford counties in western Pennsylvania. These assets include 10 producing Utica wells with daily production of 2.2 million cubic feet of natural gas per day, 25% of which are liquids.
This deal involved three wells that are completed and waiting for pipeline connections, 22 miles of midstream gathering pipeline with eight interconnect locations, a five-acre field office and yard in Hermitage, Pa., and 283 leases covering 7,700 acres.
“This transaction provides a foundation for continued build-out of midstream assets across the northern portion of the Utica,” Halvorson said.
Meanwhile, Pin Oak closed a transaction in October with Seneca Resources that led to the acquisition of assets in Forest, Elk, McKean and Cameron counties. That deal – the third major asset purchase in just 90 days – included 14 producing Marcellus shale wells and two producing Utica wells.
Pin Oak’s latest acquisition, announced in February, involves the purchase of nearly 70,000 net acres in Mahoning, Trumbull and Mercer counties, the company said. The deal includes acreage in Guernsey County in the southern tier of the Utica play. The series of transactions was conducted with “multiple sellers” in the region and encompasses midstream assets in northern Pennsylvania such as two taps into the Tennessee Gas Pipeline along with gas processing capabilities, and 33 vertical conventional wells in Ohio that target the Knox geological formation.
“This is a pivotal moment for our company as we materially add acreage to our future development position,” Halverson said.
By Dan O’Brien