S.T.L. Resources LLC (S.T.L.), an independent oil and gas company focused on Appalachian Basin assets, announced it recently closed on a strategic partnership with an affiliate of UGI Energy Services, LLC (UGI). UGI owns and operates a variety of midstream natural gas assets that support the delivery of natural gas to end-users in the Mid-Atlantic region and will assist in infrastructure development, transport and marketing of S.T.L.’s production generated from a portion of its Clinton County, Pa. acreage.

S.T.L. controls 100% of the working interest and will be the operator of record on all new wells drilled on the acreage that govern the partnership between S.T.L. and UGI. Terms of the transaction were not disclosed.

By aligning itself with UGI, S.T.L. will continue to execute on its strategy of partnering with seasoned basin participants in order to take advantage of unrecognized or underdeveloped upstream acquisition and development opportunities in Appalachia.

William Dressel, founder and managing partner of S.T.L., said in a statement, "partnering with UGIES will allow the S.T.L. team to focus on projects that exploit our long-standing belief that ‘local’ knowledge of the geological, engineering, transportation and land challenges facing upstream teams in the basin will further position us to take advantage of the abundant and untapped reserves here. This is an exciting time to be an enterprise focused on Appalachian Basin assets since we can creatively structure partnerships and transactions that allow us to attract a variety of capital and stakeholders. Since we announced our original acquisition in 2017 we have continued to add assets, investors and talent to our already deep bench of Appalachian-focused executives. We will evaluate acquisition opportunities that take advantage of our team’s collective skill set and continue to invest in personnel and projects that enable us to provide attractive risk-adjusted returns for all of our stakeholders."