2011-03-11-2011-03-10

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
$70.0MM
Description

To buy shallow Gulf of Mexico properties consisting of more than 60 leases offshore TX & LA, gaining 22.4 MMcf/d, 1,117 BOE/d.

Seneca Resources Corp., a subsidiary of National Fuel Gas Co., Williamsville, N.Y., (NYSE: NFG) plans to sell its Gulf of Mexico oil and natural gas producing properties to an undisclosed buyer for $70 million.

Seneca has interests in more than 60 offshore leases in the Gulf of Mexico in state and federal waters offshore Texas and Louisiana. Gulf production averaged 22.4 million cubic feet of gas and 1,117 barrels of oil per day during the fourth quarter of 2010.

National Fuel chairman and chief executive David Smith says, "Over the last few years, Seneca's exploration and development efforts have increasingly focused on our Appalachian and California assets. Seneca has not made substantial investments in the Gulf Coast for a number of years. This sale allows us to recover the remainder of Seneca's investment quickly."

The sale has an effective date of Jan. 1 and is expected to close by the end of April.