Seneca Resources & IOG Extend JV to Drill More Wells in PA

Seneca ResourcesIn December MDN told you that Seneca Resources (a wholly owned subsidiary of National Fuel Gas Company) had cut a deal with energy investor IOG Capital to essentially fund Seneca’s Marcellus drilling program in Elk, McKean and Cameron counties in north-central Pennsylvania (see Seneca Res. Cuts Deal with IOG Capital to Fund Up to 80 PA Wells). The deal was for IOG to fund development for an initial 75 wells. So far 39 of the 75 wells have been drilled. Yesterday Seneca announced that their deal with IOG has been revised and extended. The new total well count that IOG will participate in is 82. The royalty split has also been revised with Seneca’s royalty in 36 of the wells going down–from 10% to 7.5%. Here’s the full details on this somewhat complicated arrangement that allows Seneca to keep on drilling…

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