Pin Oak Energy Partners LLC announced Monday that it closed several transactions related to assets located in north-central Pennsylvania.
Pin Oak Energy acquired producing Marcellus and conventional assets in Elk County. As part of the transaction, the company 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. Pin Oak Energy also entered into an agreement with the seller covering the development of more than 20,000 net acres in Elk County, which is prospective for Marcellus and Utica.
Pin Oak Energy also recently closed a transaction with Appalachian Midstream Partners (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 to the TransCo Leidy Hub interconnect in Clinton County, with existing volumes transported for delivery into SGG’s interconnects with Tennessee Gas Pipeline and National Fuel Gas. Pin Oak Midstream LLC will manage the operation of the pipeline system.
“The assets in Elk County and the AMP assets are a great fit to our expanding footprint in north-central Pennsylvania,” Mark Van Tyne, Pin Oak Energy’s Chief Business Development Officer, said. “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.”
In addition to the transactions for SGG and the assets in Elk County, the company has also closed numerous smaller deals in the last six months.