IOG Resources II LLC (IOGR II) said Nov. 22 that it acquired producing gas assets in the Appalachian Basin operated by Seneca Resources, an affiliate of National Fuel Gas.
The assets consist of nonoperated wellbores primarily located in Clearfield, Elk and McKean counties, Pennsylvania, with current net production averaging about 17 MMcf/d.
The purchase price was not disclosed.
The acquisition represents the initial investment for IOGR II, the successor platform to IOG Resources LLC. Both firms are Dallas-based energy investment platforms sponsored by First Reserve.
Following the November transaction, the IOG Resources platform now includes 13 discrete investments across six core basins in the U.S.
In March 2022, IOGR acquired producing oil and gas assets in the Delaware Basin from Tier 1 Merced Holdings LLC. The nonoperated wellbores were primarily located in Eddy and Lea counties, New Mexico.
The IOG group was established in 2017 and is focused on onshore producing nonoperated oil and gas investments and structured drilling capital in North America. In 2018, National Fuel Gas sold assets to IOG CRV – Marcellus LLC for $17.3 million through a joint development agreement, according to National Fuel Gas’ regulatory filings.
First Reserve is a private equity firm focused on investing across diversified energy, infrastructure and general industrial end-markets. The firm, founded in 1983, has raised more than $32 billion of aggregate capital since its inception. Its investment and operational experience have been built from over 725 transactions, including platform investments and add-on acquisitions, on six continents.
Kirkland & Ellis LLP acted as legal counsel for IOGR II.