The search for capital has led Hunt Oil Co. and Seneca Resources Corp. down the same path: joint venture.

In the Permian, Hunt Oil entered an agreement with TSSP, a special situations investment platform of TPG, to jointly develop about 18,000 acres in the Midland Basin area in a deal worth millions of dollars.

Separately, Seneca said it has extended its Marcellus Shale joint development agreement with an affiliate of IOG Capital LP. The new deal will give the company about $325 million to drill 75 wells—almost double the amount of wells in the original agreement.

Permian

Hunt Oil said June 13 that in its agreement TSSP has committed up to $400 million earmarked for developing certain Midland Basin properties. Additional terms weren’t disclosed.

The development area covers about 18,000 net acres across Martin, Glasscock, Midland and Upton counties, Texas. Hunt Oil declined to comment on its operational and exploration activities.

The funds are expected to take about three years to deploy, according to a press release.

“This partnership will provide strategic capital to efficiently develop a premier asset position in a world-class basin,” said Travis Armayor, senior vice president for Hunt Oil, in a statement.

Matt Dillard, TSSP partner, said in a statement that he expects the agreement in the “key, low-cost basin” to generate “significant value for both parties.”

Jefferies LLC was the sole financial adviser and Baker Botts LLP was the legal adviser to Hunt in the transaction. Kirkland & Ellis was the legal adviser to TSSP.

Hunt Oil is one of the largest privately held companies in the U.S., operating both domestically and internationally for more than 80 years. The Dallas-based company has drilled wells on every continent except Antarctica, according to the release.

Co-founded in 2009, TSSP has about $19 billion in assets under management, the release said.

Marcellus

On June 13, Seneca said it has agreed to a modified extension of its Marcellus joint development agreement with IOG CRV - Marcellus LLC, an IOG Capital affiliate. Seneca is a wholly owned E&P subsidiary of National Fuel Gas Co. (NYSE: NFG).

As part of the extension, the companies will develop additional Marcellus natural gas assets located in Elk, McKean and Cameron counties in north-central Pennsylvania.

The agreement includes the development of 75 Marcellus wells located in the Clermont/Rich Valley area in Pennsylvania. In December, IOG initially committed to developing 42 wells with an option to participate in 38 additional wells if elected prior to July 1.

In total, IOG is expected to fund about $325 million for its working interest in the wells. Consequently, Seneca now expects its fiscal 2016 capital budget to range between $120 million to $160 million, down from the previous $150 million to $200 million range.

IOG continues to hold an 80% working interest in all of the joint development wells. Seneca holds the remaining 20% working interest and will continue to be the program operator.

The agreement allows National Fuel and Seneca to "leverage the competitive advantage of our low cost, fee acreage in the Marcellus and reduce the level of capital investment in our upstream business over the next two years, while maintaining operational efficiencies and providing the throughput necessary to support our pipeline expansion projects," said Ronald J. Tanski, president and CEO of National Fuel, in a statement.

To date, 39 of the 75 joint development wells have been either completed and turned to sales or drilled and in the process of being completed. An additional 36 wells are currently left to be developed under the revised agreement.

IOG has also been granted an option to participate in a seven-well Marcellus pad that will be completed prior to Dec. 31, 2017. Should IOG choose to participate in the pad, the total commitment would reach 82 wells.

In addition, Seneca and IOG have agreed to make certain modifications to the royalty structure as part of the modified agreement.

Production from all joint development wells will be gathered by National Fuel's Clermont Gathering System.

Jefferies LLC was exclusive financial adviser to Seneca for this transaction and Kirkland & Ellis was its legal counsel. Jackson Walker LLP was IOG's legal counsel.

Emily Moser can be reached at emoser@hartenergy.com.