Pin Oak Energy Partners announced that it has closed the following transactions related to assets located in north-central Pennsylvania.
Elk County, PA – Pin Oak Energy acquired from an undisclosed seller (the Seller) certain producing Marcellus and conventional assets in Elk County, PA. As part of the transaction Pin Oak Energy also acquired a 12-mile midstream gathering system capable of delivering peak volume of 25,000 MMBtu/Day to a large industrial end-user. Pin Oak Midstream LLC (a Pin Oak Energy affiliate) will operate the midstream gathering assets. In addition, the Company entered into an agreement with the Seller covering the development of over 20,000 net acres, also in Elk County, that is prospective for both Marcellus and Utica.
Appalachian Midstream Partners (AMP) – In addition to the transaction of the Elk County assets described above, Pin Oak Energy recently closed a transaction with AMP for the acquisition of Somerset Gas Gathering of Pennsylvania LLC (SGG), which owns and operates a 72-mile midstream pipeline that extends from the Lewis Run delivery point in McKean County, PA to the TransCo Leidy Hub interconnect in Clinton County, PA, with existing volumes transported for delivery into SGG’s interconnects with Tennessee Gas Pipeline and National Fuel Gas. Operation of the pipeline system will be managed by Pin Oak Midstream LLC.
Pin Oak Energy CEO, Christopher Halvorson, stated, “The last 6 months have been very busy for Pin Oak. We have closed numerous smaller deals in addition to the transactions for SGG and the assets in Elk County. The Elk County deal provides a direct line of sight to future development drilling plans for the Company, while both the Elk County and AMP deals add to Pin Oak Midstream’s growing portfolio of midstream assets.”
“The assets in Elk County and the AMP assets are a great fit to our expanding footprint in north-central Pennsylvania. The acquisition of these assets demonstrates the Company’s ability to source opportunities, work through a variety of mutually agreeable, yet complex, transaction terms, and ultimately close the deal. We are very pleased with our ongoing efforts of executing our growth strategy, which could not be done without the commitment and cooperation of our team and those of the sellers,” says Mark Van Tyne, Pin Oak Energy’s Chief Business Development Officer.
Source: Company Press Release