HOUSTON, April 30, 2012 /PRNewswire/ -- eCORP International, LLC ("eCORP") and Southern Tier Energy Partners, LLC ("STEP") recently announced the execution of a Memorandum of Understanding ("MOU") contemplating the development of up to 135,000 acres of Marcellus and Utica shale in the Southern Tier of New York State utilizing environmentally responsible oil and gas development technologies. The parties were aware at this stage that there was much more work to accomplish in order to formulate an agreement.
Because current and potentially protracted low gas prices render gas shale development marginally economic under the terms used by most energy companies, the parties had originally analyzed a business structure that had the potential benefit of imparting to participating landowners a financial stake in any success through indirect ownership in the company developing their oil and gas rights.
Since then, after further consultation among the parties, this approach, though appealing to many, does not appear to allow sufficient flexibility to assimilate all stakeholder needs and concerns, or find agreement among a consensus of the stakeholders.
John F. Thrash, CEO of eCORP states, "After greater in-depth analysis of the original conceptions, we felt that the preliminary notion of incorporating a landowner-owned company might prove too complex and cumbersome. Accordingly, eCORP and STEP have gone back to the drawing board to continue the process of identifying a beneficial deal structure for all stakeholders consistent with all applicable regulatory requirements. We will continue to attempt to craft an approach that will be streamlined, understandable, and afford greater flexibility to those considering selecting eCORP as the operator working their land, and hope to be back with a new and more workable concept in the near future."
Thrash further stated, "We wish to take the opportunity again, at this juncture, to reaffirm to all stakeholders that which we have stipulated in our prior public statements concerning our operations and business life in Tioga County and New York State; which is that eCORP intends to strictly adhere to all present and future applicable regulations, statutes, codes and authorities pertaining to all our activities in the region of any kind, and especially relative to well stimulation practices, protecting the environment, and minimizing impacts."
About eCORP International, LLC – eCORP and its predecessor companies, founded in 1978, have extensive oil and gas experience including underground natural gas storage, natural gas transportation, enhanced oil recovery in conventional reservoirs using propane and butane, exploration for and production of conventional and unconventional reservoirs, electric power generation and marketing of electricity and gas. The company was an early mover in the Marcellus play in Pennsylvania and New York, USA and recognized its potential while developing its highly acclaimed Stagecoach Storage project in New York. The company acquired European prospective acreage after farming out holdings in the Marcellus. The company's world class management team expects to apply its broad background in Europe as well as the US to develop oil and gas fields, gas storage and power generation.
Contact: eCORP International, LLC Mr. G. S. (Steve) Clifton Director of Business Development (713) 416-0280 [email protected]