By OGJ editors
HOUSTON, Jan. 10 – Seneca Resources Corp., Williamsville, NY, has acquired oil and gas properties in the Covington Township area of Tioga County, Pa., from EOG Resources Inc. for $23 million.
The properties are producing gas from the Marcellus shale and are also prospective for additional Marcellus reserves, Seneca Resources said.
EOG had contributed the 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 the transaction, Seneca will add 42 bcf equivalent of proved natural gas reserves.