WESTFIELD, Pa., Feb. 1, 2017 /PRNewswire/ -- S.T.L. Resources, LLC ("S.T.L."), a newly formed independent oil and gas company, announced today that it has recently closed on the acquisition of 8,000 acres in the core of the Marcellus Fairway in North Central Pennsylvania. Terms of the transaction were not disclosed. Funding was provided by the founders and a seasoned family office investor.
S.T.L. controls 100% of the working interest and will be the operator of record on all new wells drilled. The asset contains significant in-place infrastructure, current Marcellus production and is prospective for the Marcellus and Utica Shale as well as the Upper Devonian. The strategic location of S.T.L.'s assets also allow for future expansion, which could increase the total project acreage holdings by a factor of four times its current size.
William Dressel, Founder and Managing Partner of S.T.L., commented, "This is an exciting time to be a newly formed independent oil and gas company in the Appalachian Basin. When you combine the operational improvements achieved by E&P operators today with the well documented recoverable reserves available in the region and the expected takeaway capacity coming on-line, the assets we acquired will help serve as a launching pad to enable S.T.L. to become a significant operator in the region and help provide our partners with access to attractive risk-adjusted returns."
Mr. Dressel's experience as an entrepreneur in the Appalachian Basin includes negotiating land contracts for over 350,000 acres and working with some of the most prominent operators in the region. Mr. Dressel will be joined by William Hayward (Chairman & Senior Geological Advisor of S.T.L.) and Clinton Coldren (CEO of S.T.L.) along with other seasoned Appalachian Basin executives.
Mr. Hayward is a 30+ year Appalachian Basin veteran and one of the architects of the management team at S.T.L. Having professional relationships with each individual currently on the team has allowed Mr. Hayward to complete an experienced and diverse team to rival any in the area. Most recently, Mr. Hayward was the Founder of Hayward Natural Resources where he established multiple partnerships across Pennsylvania, Ohio, West Virginia and Texas that have resulted in more than 2,000 conventional and unconventional wells drilled within the established and proven AMI prospect areas.
Mr. Hayward stated, "For more than 30 years, members of the new S.T.L. team and I have worked in and around many of these fields in the Appalachian Basin. The acquisition of these assets are consistent with our strategic vision to identify positions that: (i) generate favorable returns in today's commodity price environment; (ii) have access to multiple hydrocarbon bearing zones; (iii) contain substantial in-place infrastructure; and (iv) have the ability to leverage the local skill set of our seasoned Appalachian Basin management team. While we will work to optimize the profitability of this acquisition and enhance shareholder value, we will also continue to seek complementary properties in the Appalachian Basin with similar attributes."
Mr. Coldren brings 39 years of oil and gas management, financial and operational experience to S.T.L. S.T.L. will be the fourth independent oil and gas company that Mr. Coldren has helped launch where he was either CEO or COO. Coldren was responsible for creating in excess of $2B of value through acquisitions and organic development during his tenure as CEO or COO. Prior to his successful stints as an entrepreneur, Mr. Coldren held various operational, drilling and petroleum engineering positions with majors and large independents.
Mr. Coldren said, "We believe that the economic returns of the Appalachian Basin, when combined with the team's local knowledge and ability to operate efficiently, will provide our partners with favorable risk-adjusted returns. Because of the past market downturn, many operators in the basin are over-extended and have been pursuing strategies to divest non-core assets or identify new partners, creating opportunities for agile E&P companies like S.T.L. I look forward to continuing to work with the S.T.L. team and its partners to take advantage of this opportune time in the cycle."
About S.T.L. Resources, LLC
S.T.L. Resources, LLC is an independent oil and gas company with headquarters in Westfield, Pennsylvania. S.T.L.'s business strategy is to pursue the leasing, acquisition, exploration and development of oil and gas properties in the Marcellus and Utica shale plays in Appalachia by leveraging a highly talented team of experienced oil and gas professionals who have all built their careers in the Appalachian Basin. The S.T.L. team has developed over 5 Tcf of gas reserves and in the Appalachian Basin participated in the drilling of over 2,000 unconventional and the leasing and management of over 500,000 acres.
FOR FURTHER INFORMATION PLEASE CONTACT:
Founder & Managing Partner
Phone: (713) 828-2482
Chief Executive Officer
Phone: (504) 451-9059
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SOURCE S.T.L. Resources, LLC