National Fuel Gas Company (NFG) announced the purchase of properties in the Appalachian Basin that are prospective for the Marcellus Shale.
National Fuel Gas Company is purchasing oil and gas properties in Tioga County, Pennsylvania, from EOG Resources (EOG). The company will pay $23 million for the acreage, which is located in Covington Township.
National Fuel Gas Company will add 42 billion cubic feet equivalent of proved reserves as a result of the transaction. The company conducts its exploration and production activities through Seneca Resources Corporation, a wholly owned subsidiary of the company.
National Fuel Gas Company increased its expected production for fiscal 2011 to a range of 65 to 75 billion cubic feet equivalent, from the previous range of 60 to 70 billion cubic feet equivalent. The company will also spend between $485 million and $560 million in capital expenditures in fiscal 2011. The previous expected range was from $425 million to $500 million.