About Seneca Resources Corporation
Southwestern Energy Company discovered the economic viability of the Fayetteville Shale and was the first company to drill and successfully produce its natural gas. At December 31, 2012, Southwestern held leases for approximately 913,502 net acres in the Fayetteville Shale play area.
For the third quarter of 2013, Southwestern placed a total of 89 operated horizontal wells on production in the Fayetteville Shale. At September 30, 2013, the company’s gross operated production rate was approximately 2,030 MMcf per day.
At September 30, 2013, Southwestern had 151 operated horizontal wells on production and 80 wells in progress in the Marcellus Shale, resulting in net production of 44.7 Bcf in the third quarter of 2013, up 196% compared to 15.1 Bcf in the third quarter of 2012. Gross production from the company’s operated wells in the Marcellus Shale was approximately 611 MMcf per day at September 30, 2013.
Its West Division was established in 1987 when the company acquired several properties from Argo Petroleum in Ventura County, Ca. In 1998, Seneca expanded its base into Kern County, Ca. by acquiring the HarCor, Whittier and Bakersfield Energy companies and Ivanhoe Energy USA in 2009. In 2012, Seneca acquired a portion of assets in the east Coalinga oil field, located in the western Fresno County, Ca., from Chevron U.S.A. Inc., a subsidiary of Chevron Corporation. The West Coast Division fields are predominately oil producing reserves displaying long life properties, with low decline rates and low operating costs. As such, these assets provide a solid base and strong cash flow
Project Experience Includes:
Seneca operates more than 3,000 shallow wells and more than 150 deep shale wells in New York state and Pennsylvania. The region is known for its stable, long life natural gas reserves and is the site of the first oil well drilled by Edwin L. Drake in 1859. It is also home to the Marcellus and Utica geologic formations that stretch from the Southern Tier of New York state, through Pennsylvania, Ohio and West Virginia. Seneca controls 745,000 net prospective acres in the Marcellus Fairway in Pennsylvania, which are part of its approximately one million acres located throughout the Appalachian Basin in New York and Pennsylvania.
Of Seneca’s Marcellus holdings, approximately 80 percent is fee acreage, with the mineral rights owned outright by Seneca with no royalty obligation or lease expiration. The remaining Marcellus land rights, approximately 20 percent, are leasehold interests, most of which are held by production. This industry-leading mineral ownership position greatly improves our production economics compared to other companies active in the Marcellus. Seneca (and its predecessor affiliates) has been an exploration and production entity in the region for more than 100 years.
The Marcellus and Utica Shales are a significant focus for Seneca and represent a substantial opportunity given Seneca’s existing extensive acreage position.