Prometheus Energy and Seneca Resources Sign LNG Services Agreement
Strategic Deal to Further Develop Marcellus Shale Infrastructure using LNG-Fueled Operations
HOUSTON, Oct. 25, 2012 /PRNewswire/ -- Prometheus Energy Group Inc. ("Prometheus Energy"), a leading supplier of liquefied natural gas (LNG) to the industrial sector, today announced it has entered into a long-term master agreement with Seneca Resources Corporation ("Seneca"), the wholly-owned exploration and production subsidiary of National Fuel Gas Company (NYSE: NFG) ("National Fuel"), to supply LNG and related equipment and services for Seneca's initiative to utilize clean-burning natural gas in its drilling operations.
Under the agreement, Prometheus will be Seneca Resources' exclusive turnkey LNG solutions provider, supplying LNG fuel through its established North American LNG network, providing onsite mobile LNG storage and vaporization equipment, and providing skilled local technician support to ensure operational reliability of LNG equipment. In addition, the agreement will provide Seneca with an immediate reduction in fuel costs and air emissions (CO2, SO2, NOX), coupled with the operational flexibility required in today's dynamic E&P market.
"Prometheus developed the world's first LNG-fueled drilling rig solutions, and our market leading experience in the LNG-fueled drilling space makes us uniquely capable to address the major challenges of an evolving E&P operation while providing demonstrable value for our customers", said Ron Bertasi, CEO of Prometheus Energy. "We are extremely pleased to partner with a leader like Seneca Resources in providing a lower cost, cleaner burning natural gas alternative for their operations."
"We are proud to be the first operator in the Pennsylvania Marcellus to launch such a program using dedicated natural gas engine technology. And we are equally proud to partner with industry leaders such as Prometheus Energy and our drilling equipment partner Ensign Energy Services Inc.," said Steven Conley, Vice President of Drilling in Seneca's Pittsburgh office.
Ensign, one of the world's leading land-based drillers and well servicing providers for crude oil, natural gas and geothermal, operates 15 drilling rigs exclusively on natural gas in the United States.
About Prometheus Energy
Prometheus Energy is one of the largest and fastest growing suppliers of liquefied natural gas (LNG) to the industrial sector in North America. Prometheus provides turnkey fuel solutions to convert industrial users of diesel, propane and other crude-derived fuels to clean, domestic, secure LNG, resulting in reduced fuel cost and environmental footprint. The company is vertically integrated from LNG production through distribution, onsite storage, and vaporization. A pioneer in the industrial LNG market, Prometheus developed first-of-their-kind conversions of industrial fuel consumers to LNG in numerous sectors, and was named a Finalist in the 2012 Platts Global Energy Awards in recognition of its industry leadership. Prometheus Energy is privately held by Shell Technology Ventures Fund 1 B.V. and Black River Asset Management LLC, a wholly owned but independently managed subsidiary of Cargill. For more information, please visit www.PrometheusEnergy.com
About Seneca Resources Corporation, subsidiary of National Fuel Gas Company
Seneca Resources Corporation, the exploration and production segment of National Fuel Gas Company explores for, develops, and purchases natural gas and oil reserves in California and Appalachia. Additional information about Seneca Resources and National Fuel Gas Company is available at www.nationalfuelgas.com or through the Company's investor information service at 1-800-334-2188.
SOURCE Prometheus Energy Group Inc.