Zone Oil & Gas, LLC (ZONE) announced that it has signed an Exploration and Geophysical Joint Venture Agreement with Penn Virginia Corporation.
The Joint Venture covers approximately 40,000 acres under lease in Tioga, Potter, Somerset, Westmoreland and Fayette Counties, Pennsylvania, and centers on exploring the Marcellus Shale, and the Oriskany and Tuscarora formations. Under the terms of the agreement, the joint venture will conduct at least one 3-D seismic survey and intends to drill up to six wells in 2009.
“Zone, through its predecessor entities, has recorded solid success in the Oriskany in Pennsylvania and West Virginia over the past 25 years,” said Thomas H. O’Neill, Jr., Zone’s Chairman. “We strongly believe that the Marcellus, Oriskany, Tuscarora, and Trenton Black River formations in the Appalachian Basin have tremendous potential for future development.”
“The Joint Venture capitalizes on the synergies of Penn Virginia and Zone by forming a powerful team with highly-specific knowledge and expertise to address the unique land, drilling, and production challenges in the area of mutual interest,” said Bob Brook, Zone’s President and CEO.
Headquartered in Buffalo, New York, Zone Oil & Gas is an independent energy company focused on exploring the Marcellus, Oriskany, Tuscarora, and Trenton Black River formations in the Appalachian Basin. Zone is the successor organization to several entities chaired by Tom O’Neill, Jr. that have successfully pursued the Oriskany in the area over the past 25 years. More information on Zone can be found on the company’s website: www.zonegas.com.
Penn Virginia Corporation (NYSE:PVA) is an independent natural gas and oil company focused on the exploration, acquisition, development and production of reserves in five onshore regions of the U.S. PVA also owns approximately 82 percent of Penn Virginia GP Holdings, L.P. (NYSE:PVG), the owner of the general partner and the largest unit holder of Penn Virginia Resource Partners, L.P. (NYSE:PVR). GP Holdings LP (NYSE:PVG), through its subsidiaries, engages in the management of coal and natural resource properties, as well as gathering and processing of natural gas in the United States.