Oil & Gas Assets for Sale - MIDSTREAM NEWS · 2011-08-16 · Crude production exceeds existing...

EAST TEXAS GATHERING SYSTEM8-Mile Gas Pipeline.MARSHALL/HARRISON AREANear Penn Virginia Well.MultiPay East Texas Reservoirs.Cotton Valley, Travis Peak.Haynesville Development Possible.Pipeline Capacity: 10,000 MCFDMultiple Line Right-Of-Way. PIPELINEHigh Pressure Line.Interconnects w/ Two Main ETX Lines.SUBJECT TO PRIOR SALECONTACT SELLER FOR MORE INFO

G 1425PL

FEATURED LISTING

Rex and Stonehenge enter$25 MM midstream JV

Rex Energy Corp. and StonehengeEnergy Resources LP have formed a jointventure involving initial investment of up to$25 million for construction of a high pres-

sure gathering system andcryogenic processing plant inButler County, Pa. The JV will

operate through the newly formed KeystoneMidstream Services LLC.

Rex Energy (NASDAQ:REXX) owns 40% of KeystoneMidstream and has contributed to the JV itsexisting gathering system in Butler County.Stonehenge owns 60% of Keystone Midstreamand contributes its Sarsen Gas Plant, a cryogenic

facility with 40 MMCFD processing capacity.Additionally, Rex enters into a gathering andprocessing agreement with Keystone Midstreamreserving 20 MMCFD capacity in the SarsenGas Plant in 2010 and 40 MMCFD thereafter.

Stonehenge will manage the operations.Further, Stonehenge has several other propos-als out to other Marcellus producers for vari-ous compression and gathering systems, and isstill looking for new processing operations,said Mike Brinkmeyer, the company’s directorof new ventures.

$1.3 billion, 185-mile Fayetteville pipeline green lightedKMP/ETP JV gets FERC permit to build, from Arkansas to Mississippi

The Fayetteville Express Pipeline LLC, a 50/50 joint venture between Kinder MorganEnergy Partners LP (NYSE:KMP) and Energy Transfer Partners LP (NYSE:ETP) hasreceived Federal Energy Regulatory Commission permission to build and operate a new ~185-

mile gas pipeline running from Arkansas to Mississippi.The design involves a 42-inch diameter with initial transportation

capacity of 2 BCFD, originating in ConwayCounty, Ark., running through White County,Ark., and terminating at the Trunkline Gas Co.line in Panola County, Miss. Pending furtherregulatory approvals, construction of the ~$1.3billion project is expected to begin early 2010, with completion by late 2010 or early 2011.

The plan is to provide shippers in the Fayetteville Shale of Arkansas with much-neededtakeaway capacity, flexibility and access to markets.

As of late September, 1.85 BCFD of the initial 2 BCFD capacity was already contractedunder long-term FTS agreements. The pipe is being manufactured in Italy, and two of 11 pipeshipments had arrived as of the end of Q3.

Enbridge completes Bakken pipeline expansionIncreases to 160,000 BPD capacity in multibillion bbl field

Enbridge Energy Partners LP (NYSE:EEP) has completed a $147 million expansion ofits Enbridge Pipeline North Dakota LLC system to better accommodate growing productionin the Bakken oilfield.

Capacity on the western end of the system, that runs to Minot, N.D., wasincreased by 40,000 BPD. The Minot to Clearbrook, Minn., leg of the system now cancarry an additional 51,000 BPD.

Eleven pumping stations between northwest North Dakota and Clearbrook wereupgraded. The expansion opened January 1, raising total capacity for Enbridge North Dakotasystem to 161,000 BPD, in response to increasing output in the technically challengingBakken oil field underneath parts of North Dakota, Montana and southern Saskatchewan.

Enbridge announced this expansion project in 2007. The company has more than doubledits capacity to move North Dakota crude since 2007, and has proposed further expansion of itspipeline network to increase capacity by 30,000 bbl in 2011, and potentially another 115,000bbl by 2012.Output from the rich field is increasing as new production and drilling methodsare applied in the rough Bakken geology.

MIDSTREAMNEWSServing the midstream marketplace with research, insight & transaction opportunities

Project leads transport infrastructuregrowth in the Marcellus, following the trendthroughout continental U.S.

Growth in Marcellus midstreamgathering and processing infrastructure.

FAYETTEVILLE continues on page 11

ENBRIDGE continues on page 9

REX continues on page 10

January 14, 2010 • Volume 3, No. 2

EOG starts shipping Bakken crude to Oklahoma by railAlso begins shipping gas via new pipeline to Chicago

EOG Resources Inc. began shipping crude from its terminal in northwest North Dakotaby rail to Oklahoma – a four day voyage. The crude is unloaded in Stroud, Okla., and putthrough a 17-mile pipeline to a Cushing, Okla. Terminal.

EOG’s terminal near Stanley is capable of loading 60,000 bbl onto a 100-cartrain daily. Construction of the Stanley platform, and the Stroud-to-Cushing pipeline,began in Q2 2009, for which EOG (NYSE:EOG) has contracted Watco CompaniesInc. to perform the labor and logis-

tics services per both facilities which EOGowns. The Stanley facility at full operationwill employ 35 to 45 people. The Stroud facil-ity will employ ~35.

Crude production exceeds existing pipeline takeaway capacity, which inspired the EOG’scrude-by-rail plans, that involve an arrangement with the BNSF Railway.

EOG expects its Bakken production to continue growing for the long term. EOG is con-sidering a purchase of third party crude oil to augment its volumes being shipped by train. The company is the second largest crude producer in the North Dakota Bakken in 2008, whereit holds ~500,000 net acres. EOG continues on page 11

Crude-by-rail is part of general trend of midstream transport growth gettingBakken production to market.

www.plsx.com

Breaking NewsApache buys 51% share in Kitimat LNG

project in BC, Canada for Horn River gas.

MIDSTREAMNEWS Thursday, January 14, 2010 2

www.plsx.com Call PLS To Place Your Listing: (713) 650-1212

Welcome to PLS’ MidstreamNews, a 3-4-weekly report on

gathering, purchases, pipelines, mergers, acqui-sitions, capital and performances in the mid-stream marketplace. In addition to the news, thereport also carries listings of property (PP), over-ride (RR) and midstream (G) assets for sale, alongwith lands (L) and prospects (DV).

Anonymous listings are coded alpha-numerically.Clients interested in accessing only listing-package information call (or email) PLS andprovide the listing codes.

Besides the MidstreamNews, PLS publishes amonthly recap of the e&p market in theProspectCentre and a&d market recaps in theA&D Transactions.

Additional products details can be obtainedby visit our website at www.plsx.com.

MIDSTREAMNEWS

PLS, Inc.P.O. Box 4987, Houston, TX 77210Phone: (713) 650-1212Fax: (713) 658-1922Website: www.plsx.com

Managing Director, ResearchBrian Lidsky - [email protected]

EditorGentry Braswell - [email protected]

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John Gargani, Southwestern Energy Co.Robert Turnham, Goodrich Petroleum Corp.

M. Lynn Bass, GasRock Capital, LLCCathy Sliva, BlueRock Energy Capital, LTD

Frank Pottow, Greenhill CapitalAdrian Goodisman, Scotia Waterous

Alan Smith, Quantum Resources ManagementDavid Marchese, Haddington Ventures, LLC

To obtain additional information on properties forsale in this MidstreamNews, please contact our listingdept: (713) 650-1212or by fax: (713) 658-1922with theproperty number. Please note only clients are able to re-ceive additional information.

The MidstreamNews newsletter is published every three(3) weeks by PLS, Inc.

© Copyright 2010 by PLS, Inc.Federal copyright law prohibits unauthorized reproduction by any means and imposes fines up to$100,000 for violations.

How To UseMidstream heads into New Year at a gallopThe first edition of MidstreamNews for 2010 sees ongoing Marcellus Shale infrastruc-

ture growth, with Rex Energy and Stonehenge Energy forming the $25-millionKeystone Midstream Services LLC, for construction of a high pressure gathering systemand cryogenic processing plant in Butler County, Pa. Stonehenge has several otherMarcellus-related acquisition proposals out, and is looking for new processing operations.

Spectra Energy will expand its existing Marcellus pipeline systems to the New Yorkand New Jersey markets, having entered new binding agreements with ChesapeakeEnergy, Consolidated Edison and Statoil.

Tudor Pickering & Holt Co.’s January 2010 Appalachia Infrastructure Update forecaststhe industry will spend upwards of $10 billion on new infrastructure in the Devonianshales of Appalachia between 2009 and 2013; the firm estimates Appalachia productiongrowing to ~6 BCFD by 2013, to ~7 BCFD by 2015, and to ~9 BCFD by 2020. The regionaldemand averages about 13 BCFD.

Dominion plans to spend $253 million expanding its West Virginia gathering, process-ing and NGL facilities; the project is slated for completion by Q4 2012. The RockiesExpress-East began delivering to the Dominion system in July which, among others, dis-placed Texas Gas Transmission shipping.

In the Fayetteville play, Kinder Morgan and Energy Transfer Partners have receivedFERC authorization to proceed with their 50/50 joint venture, Fayetteville ExpressPipeline LLC, a 185-mile, 42-inch pipeline transporting from Arkansas to Mississippi at aninitial design capacity of 2 BCFD. The $1.3 billion project is due for completion by late thisyear or early 2011.

The New Year also finds Bakken infrastructure rushing to keep up with the growingproduction, in the lucrative but challenging formation – EOG Resources has begun mov-ing Bakken crude by train to Oklahoma. Enbridge Pipeline North Dakota LLC’s $147 mil-lion expansion is finished, while it continues planning additional capacity through 2012.And, TransCanada’s Bison Pipeline LLC project, a proposed 301-mile, 30-inch gaspipeline in Wyoming, has received a positive environmental assessment from the FederalEnergy Regulatory Commission, with an estimated in-service date of November 15.

This edition sees some Gulf of Mexico A&D as well, with Enbridge buying MarkWest’s50% stake in Starfish Pipeline LLC, for which MarkWest paid $42 million to EnterpriseProducts in 2005; and Crosstex bought Chevron Midstream Pipelines LLC’s NGLIntracoastal Pipeline for $10 million. And, Targa Resources is planning to expand its NGLfractionator in Mont Belvieu, Texas, which will increase the company’s gross NGL fractiona-tion capacity along the Texas/Louisiana coast to 439,000 BPD.

The Energy Information Administration’s pipeline report in September indicated U.S.pipeline infrastructure expansion activity in the continental United States has been ele-vated for at least 10 years, and likely will remain so in the near term, through 2011. Mostof that ongoing growth will be dedicated to increasing capacity from the RockyMountains and Mid-Continent developing production for major Eastern U.S. markets.

The EIA forecasts domestic production, particularly from unconventional resources, tokeep showing gains in the long term – tight sandstone formation gas is the biggestsource of unconventional production, which the EIA estimates will make up 29% of all U.S.production in 2030, with production from shale formations the fastest growing source,expected to grow to 3.7 TCFY. — By Gentry Braswell, MidstreamNews editor

Experienced. Capable. Knowledgeable.Flexible. Ready To Work.Five States Energy Capital works with independent producers to acquire, develop, exploit & service producing properties.

214.363.3008For more information:

[email protected] | www.fivestates.com

Thursday, January 14, 2010 MIDSTREAMNEWS3

A&D News

Note from Brian Lidsky– Managing Director, ResearchIn this issue of Midstream News, 2010 begins where we left off in 2009 – with the buildout

of the shale infrastructure and the need for producers to get their commodities to markets.Our lead is the Fayetteville Express Pipeline which received FERC permission to build

185 miles of 42” pipeline with an initial capacity of 2.0 Bcf/d originating in Conway County,Arkansas and terminating at an interconnect with Trunkline Gas Company inPanola County, Mississippi. The $1.3 billion project has a targeted in-servicedate of early 2011, with interim service to NGPL in October 2010. Besides NGPLand Trunkline, the pipe will interconnect with ANR and Texas Gas.

Next this month is the Bakken, where EOG completed and began operations on 60,000b/d rail terminal originating in NW North Dakota and terminating in Cushing, Oklahoma.Enbridge also completed a $147 million expansion that increased the western leg capacityby 40,000 b/d going to Minot, North Dakota and a 51,000 b/d expansion eastward toClearbrook, Minnesota. Further Enbridge expansions are in the works.

The Marcellus continues to attract producers with recent land sales in Pennsylvaniagarnering $4,000 to $5,000 per acre. Producers clearly need more capacity and currentproduction is running about 2.5 Bcf/d. Help is on the way. $10 billion and 7.0 Bcf/d of majorpipelines are in various stages of planning through 2012 (source: Tudor, Pickering, Holt).

On the macro front, the cold snap in the South (degree days 37% above normal) lastweek resulted in a 266 Bcf draw in storage, the second largest on record (largest was a 274Bcf draw) since weekly statistics began 17 years ago. As of market close January 14, 2010(post storage number release), gas prices are $5.90, $6.16, $6.29 and $6.38 per MMbtu forthe 12, 24, 36 and 48 month strip NYMEX (source: PLSX.com).

Plains All American buys more Capline assets for $64 MMPlains All American Pipeline LP now owns a 43% share in the Capline Pipeline system,

after buying more of its assets for $64 million. The acquisition includes a 21% undivided inter-est in Capline and a 100% interest in 720,000 bbl storage at Patoka, Ill.

The system is a 40-inch, 633-mile mainline crude pipeline running from St.James, La. to Patoka, with designed operating capacity of ~1.1 million BPD, andabout 470,000 BPD capacity now attributable to Plains All American’s stake. It’s

one of the primary transportation routes for shipping crude and NGL to the Midwest.Plains All American (NYSE:PAA) made this acquisition, either directly or indirectly,

through Chevron, Marathon Oil Corp. and Shell Pipeline Co. It made its initial 22%Capline acquisition in 2004, accessing some 3 million BPD in PADD II refining capacity.

Capline has two active docks, and accesses the Louisiana Offshore Oil Port and PAA’s St.James Terminal. It is also connected to PAA’s existing St. James and Patoka Terminal facilities, whichon completing announced expansions with designed capacities of ~7 million bbl and ~4 million bbl.

Martin buys Crosstex midstream assets for $40 MMMartin Midstream Partners’ Waskom Gas Processing Co. joint venture will pay $40 mil-

lion for the East Texas gas gathering and processing assets of the Crosstex Energy companies.Included in the purchase are Crosstex Energy Inc. and Crosstex Energy LP, in confor-

mance with Martin’s “focused growth strategy” in these key productionareas, CEO Ruben Martin said. The deal is expected to close inJanuary. Waskom Gas Processing’s general partners are

CenterPoint Energy subsidiary CenterPoint Energy Gas Processing, and Prism GasSystems, operator of the Martin Midstream subsidiary Waskom Gas Processing.

Assets to be purchased comprise two compressor stations, ~60 miles of gas gatheringpipelines and three processing refrigeration plants. The throughput capacity of the system is~75 MMCFD and could be expanded by adding compression.

“These assets complement Waskom Gas Processing Co.’s existing infrastructure andstrengthens its position for future Cotton Valley and Haynesville production,” Martin said.

Martin Midstream (NASDAQ:MMLP) also announced amending and extending its sen-ior secured credit facility, originally scheduled to mature November 10. Arranged by WellsFargo Securities and RBC Capital Markets, Martin Midstream upsized its borrowing capacityto $355.67 million and extended the maturity date to November 9, 2012.

Crosstex aims to use the money for general corporate purposes such as debt service.

www.plsx.comPLS Fax: (713) 658-1922

Midstream NewsTarga expands NGL capacity,signs deal with ONEOK

Targa Resources Partners LP willexpand capacity by 60,000 BPD to 275,000BPD, at its majority owned Cedar BayouFractionators LP NGL fractionation facility

at Mont Belvieu, Texas. Thisincreases Targa’s maximum grossNGL fractionation capacity along

the Texas and Louisiana Gulf Coastto 439,000 BPD.

ONEOK Partners LP has signed anintent agreement for 10 years of firm-space fractionation with Targa(NASDAQ:NGLS). Per the deal,ONEOK will contract for 60,000BPD fractionation capacity at the facility cur-rently under expansion.

The expansion is expected to be opera-tional during Q1 2011. Targa and ONEOK(NYSE:OKS) plan to construct interconnectfacilities linking the facility with ONEOK’srecently completed Arbuckle Pipeline – a440-mile raw NGL pipeline extending fromsouthern Oklahoma through the BarnettShale in North Texas, which then runs on toONEOK’s fractionation and storage facilitiesat Mont Belvieu.

In addition to owning a 90% stake in itsMB-1 fractionator in Mont Belvieu, ONEOKalso owns NGL fractionators in Medford,Okla., Bushton and Hutchinson, Kan., and a10% interest in a Conway, Kan. fractionator.The company has an overall net capacity of~550,000 BPD.

Midstream Briefs• Oxane Materials Inc., a manufacturer

specializing in technology to help increase oil and gas production, is planning to build a $15 million plant in Van Buren, Ark. Thecompany plans to expand the plant through2014, with a total investment of $32 millionexpected, initial employment of ~50 workers,and eventual additional employment of up to300 workers.

• Quest Resource Corp., Quest EnergyPartners LP and Quest Midstream PartnersLP are restructuring within the new Post -Rock Energy Corp., (NASDAQ:PSTR). Beren -son & Co. acted as the financial advisor toeach Quest entity in the restructuring of debtobligations. Quest Midstream owns morethan 2,000 miles of gathering and 1,100 milesof interstate transmission in Oklahoma,Kansas and Missouri.

(337) 234-1125

www.ilandman.com

GULF COASTSOUTH LOUISIANA BARGES2-Barges For Sale. STORAGE & PRODUCTION BARGESStorage & Transport Barge: 9,600 Bbls3-3,200 Bbl Compartments. 195x35x11 EQUIPMENTProduction Barge. Recently RefurbishedIncl: Line Heater, Separaters, Glycol UnitPlus Reboiler, Condenser, Heater TreaterFuel Scrubber, Gun Barrels, Stock TanksON LOCATION. CAN MOVE & SHIP

E 4059PL PLS

SOUTH TEXASATASCOSA CO., TX PIPELINEH2S (Sour Gas) Pipeline. ±13-Miles.SOUTH PLEASANTON TO FASHINGOuter Diameter: 6.625’’Inner Diameter: 6.0’’ PIPELINEDesign Pressure: 2,282 psiGROUND FLOOR OPPORTUNITYCapacity: ±25,000 MCFDOnly H2S Line In Area.Emerging Eagle Ford Activity In Area.CONTACT SELLER FOR DETAILS

G 2907PL

LA SALLE CO., TX ACREAGE32-Potential Wells. 2,625-Acres.EAGLE FORD POSITIONObj 1: Eagle Ford Shale. 6,000 Ft.Obj 2: Austin Chalk. 5,500 Ft.Pipeline Through Acreage. EAGLE FORD100% OPERATED WI; 75% LeaseEst Reserves/Well: 5.5 BCFEst Reserves/Project: 176 BCFEst Completed Well: $4MM - $5MMCALL PLS FOR MORE INFO

DV 2573


Call PLS To Place Your Listing: (713) 650-1212

A&D NewsIberdola sells NYSEG assets to Inergy for $65 million

Inergy LP-subsidiary Inergy Midstream LLC is buying the Seneca Lake storage facil-ity in Schuyler County, N.Y. and two related pipelines, from New York State Electric & GasCorp., a unit of the Spanish utility company Iberdola SA, for $65 million.

The Seneca Lake facility is a ~2 BCF underground salt cavern storage facility on Inergy'sU.S. salt property outside Watkins Glen, N.Y., with a maximum withdrawal capability of 145MMCFD and maximum injection capability of 75 MMCFD. It's connected to the DominionTransmission System via the 16-inch, 20-mile Seneca West Pipeline and indirectly to the city gateof Binghamton, N.Y. via the 12-inch, 37.5-mile Seneca East Pipeline that runs within about fourmiles of Inergy's Stagecoach North Lateral interconnect with the Millenium Pipeline.

The move is part of Iberdola's 2008-2010 asset sales plan. "Inergy is extremely pleased toannounce this agreement to acquire assets that are a strategic complement to our natural gasstorage and transmission hub strategy,' said Inergy LP CEO John Sherman. "The acquisition,which meets our investment criteria on a standalone basis, will also significantly enhance thevalue of Inergy's existing assets and is expected to increase our economic return on futureexpansion projects in the northeast market."

Enbridge buys 50% of MarkWest’s Starfish Pipeline stakeEnbridge Offshore Gas Transmission LLC and Enbridge Inc. (NYSE:ENB) unit bought

MarkWest Energy Partners LP’s 50% interest in Starfish Pipeline Co. LLC, effectiveDecember 31. Terms weren’t disclosed. MarkWest paid ~$42 million for the share in 2005.

The Starfish Pipeline Co. Gulf of Mexico assets include the 36-inch, 325-mileStingray Pipeline which extends from the offshore areas of High Islands, West andEast Cameron, Vermillion and Garden Banks, north to onshore southern Louisiana

connections with the West Cameron Dehydration Plant, the Targa-owned Barracuda andStingray Gas Processing plants, and three interstate and one intrastate pipelines; with capacityof more than 650 MMCFD, with two compressor stations summing 29,000 HP, transportinggas and injected condensate from ~53 fields offshore.

The Denver-based MarkWest (NYSE:MWE) paid an Enterprise Products Partners LPaffiliate $42.1 million in 2005 for its 50% Starfish interest. “The sale of the Starfish assets ispart of our ongoing strategy to continue developing our position in the onshore resourceplays,” MarkWest CEO Frank Semple said. “We are currently the largest gatherer in theWoodford shale, the largest gatherer and processor in the Marcellus shale, and we have a grow-ing presence in the Granite Wash and Haynesville shale. The proceeds from the Starfishdivestiture will be used to further develop infrastructure to serve our producer customers inthese rapidly expanding areas.”

Morgan Stanley was MarkWest’s financial advisor on the deal. A&D Briefs• The Corinthian Capital Group LLC

acquired Beta International Inc. in a recap -italization transaction. Gulfstar served as thefinancial advisor to Beta. Beta is a worldwidesupplier of flow control products in the energy,transmission and infrastructure industries,head quartered in Houston, with offices in TheNetherlands, Mexico, Indonesia and Singapore.

• Piedmont Natural Gas (NYSE:PNY) soldhalf of its 30% ownership stake in SouthStarEnergy Services to AGL Resources (NYSE:AGL)

for $57.5 million, effective NewYear’s Day. Per the agreement

which was announced in July, Piedmontretains a 15% ownership and earn ings interestin SouthStar, which is no longer subject to anypurchase option in favor of AGL Resources.Piedmont is engaged in the dis tri bution ofgas in North Carolina, South Carolina andTenn essee, with subsidiaries invested in jointven tures that include unregulated retail gasmar keting, interstate storage and intrastatetransportation.

Crosstex buys Chevron NGL pipeline for $10 millionCrosstex Energy Inc. and Crosstex Energy LP (NASDAQ:XTXI, XTEX) acquired the

60-mile Intracoastal Pipeline from Chevron Midstream Pipelines, a Chevron Corp.(NYSE:CVX) subsidiary, for ~$10 million. The pipeline extends from Patterson to Henry in

southern Louisiana, connecting Crosstex’s Pelican processing plant and accesses otherregional third party processing plants.

Pelican plant NGL flows through the Intracoastal Pipeline to Crosstex’s Cajun-Sibon NGL pipeline for delivery to its Riverside fractionator. The company’s Eunice process-ing plant is also connected to the Cajun-Sibon pipeline.

Crosstex operates ~3,300 miles of pipeline, 10 processing plants and three fractionators. Itcurrently provides services for 3.2 BCFD, which is about 6% of marketed U.S. daily production.

“The Intracoastal Pipeline will serve as a strategic link between our Pelican and Euniceprocessing facilities and our Eunice and Riverside fractionators,” said Crosstex CEO Barry E.Davis. “We believe the pipeline will enhance our operational efficiencies and competitiveadvantages in the region, allowing us to maximize benefits from the processing and NGLvalue chain. The acquisition is consistent with our strategy to develop our NGL business insouthern Louisiana.”

Advertise & List!Contact PLS | 713.650.1212 | www.plsx.com



New Spectra pipeline project connects NYC to MarcellusSpectra Energy Corp. (NYSE:SE) will expand to existing pipeline systems to New York

and New Jersey markets, having entered agreements with Chesapeake Energy MarketingInc., Consolidated Edison Inc., and Statoil ASA.

The new binding agreements enable expansion of the existing TexasEastern and Algonquin pipeline systems to include 16 more miles of 30-inch pipeline from Staten Island to Manhattan, expected to be complete bythe end of 2013. The

expansion will increase the capacity ofthe two pipelines by 800 MMCFD, intoCon Edison’s (NYSE:ED) service area.With a commitment of up to 425MMCFD, the Chesapeake Energy Corp. (NYSE:CHK) subsidiary has the most.

Chesapeake Energy and Statoil are joint venture partners in developing the Marcellus Shale,which is understood to have large gas reserves but underdeveloped midstream infrastructure.

New York Marcellus gas volumes won’t be required to support this expansion,Chesapeake CEO Aubrey K. McClendon said, “We look forward to the day when we can reac-tivate our Marcellus drilling program in the Southern Tier of New York using our advanceddrilling and completion technologies, which will demonstrate our ability to safely and respon-sibly explore for and produce natural gas in an environmentally sensitive way, just as we doevery day in Pennsylvania and in many other states across the country.”

Pipelines/Gathering

Marcellus Infrastructure – Spectra Energy

Source: Tudor, Pickering, Holt & Co.

Project transports Pennsylvania productioninto New York City, circumventing Chesapeake’sself-imposed deactivation of N.Y. drilling.

~$253 million expandsDominion’s W. Va. footprint

Dominion Resources Inc. will expandits West Virginia gathering, processing andNGL facilities, to increase efficiency and

reduce pressure in its gathering sys-tem. It will allow local gas producersto increase their shipping volumes.

Dominion (NYSE:D) will complete threecompression units that are under constructionand add nine new units totaling ~7,000 HP inthe next three years, at Harrison, Doddridge,Lewis, Gilmer, and Kanawha counties. About25 miles of replacement or new pipeline willbe built at various places in the system toincrease delivery and fix bottlenecks. Two

new processing plants will be added, a 40MMCFD facility in Lewis County and a 10MMCFD in Pleasants County, raising capacityfrom ~230 to ~280 MMCFD. Capacity at theHastings extraction plant in Wetzel Countywilll also increase by 60,000 gallons/day.

The ~$253 million project should bedone by Q4 2012, being funded by feescharged to producers. The Rockies Express-East began delivering to the Dominion systemin July, displacing Texas Gas Transmissionand other shipping.

“This is a good project for West Virginiaand its natural gas industry,” Dominion CEOGary Sypolt said. “Dominion will increase itsinvestment and local producers will increasetheir production, thereby aiding the state’seconomy through job creation and increasedproperty, severance and other taxes.”

Midstream expansion adds 50 MMCFDprocessing capacity, in region.

www.englehartenergy.com

• Texas Eastern Transmission (TETCO) - 6.7 bcf/d total system capacity.• Algonquin Gas Transmission – 2.5 bcf/d total system capacity. • 80 bcf regional natural gas storage (working gas).• Expansions

• TEMAX/TIME III – looping and compression, new pipeline to Transco Station 195. 455 mmcf/d, Nov. ’10 in-service.• TEAM 2012 – Targeting 300 mmcf/d, but scalable. 150 mmcf/d contracted with RRC, finished open season on other 150

mmcf/d 12/1/09. Estimated in service Q4 ’12.• TEAM 2013 – Targeting 500 mmcf/d, but scalable. Open season from 11/20/09 - 1/15/10. Estimated in-service Q4 ’13.• CHK/ED/STO pipeline – Contracted with CHK, ED and STO for up to 800 mmcf/d to NYC. Estimated in-service Q4 ’13.



$10 billion, 7 BCFD Appalachia midstream growthThe January 2010 Appalachia Infrastructure Update released by Tudor Pickering &

Holt Co. envisions that between 2009 and 2013, the industry will spend upwards of $10 bil-lion on new infrastructure in the Devonian shales of Appalachia.

Current Appalachia production is ~2.5 BCFD, and theAugust 2009 TPH supply study predicts Appalachia produc-tion of ~6 BCFD by 2013 growing to ~7 BCFD by 2015, and

~9 BCFD by 2020. Regional demand averages about 13 BCFD, falling to seasonal lows of~8 BCFD and highs above 20 BCFD.

To move this incremental ~3.5 BCFD of supply, 5.9 BCFD of new pipeline projectshave been announced.

There are widely known regional issues in building Appalachian infrastructure, whichmeans potential for longer project timelines and higher costs. Some of these issues includelocal coal production, and topography, i.e., river crossings (Pennsylvania has the moststream miles of any of the lower 48 states), mountains and national forests.

MIDCONTINENTLAMPASAS CO., TX PIPELINE18-Miles Pipeline Project Needed.COPPERAS COVERight Of Ways Currently Being Obtained.Completion Expected By Year-End 2009.SEEKING PROJECT PARTICIPANTS100% WI Possible For Pipeline. PIPELINE Active w/ New Production. PROJECTNeeds Max Capacity: 12 MMCFDPotential Cash Flow: $270,000/MnOperator Has Drilling Plan —— Needs Pipeline Development.

G 6389PL

Pipelines/Gathering

Planned Projects - Major Natural Gas Pipelines in the Appalachias


CapacityName Company (mmcf/d) In-Service Cost ($mm)

Columbia Penn NI 100 Q3'09Nominal $

(Undisclosed)

Sentinel Expansion WMB 100 Nov. 2009

TEMAX/TIME III SE 455 2H'10 $700

Tioga Extension NFG 200 Sep. 2011 $43

TGP Line 300 EP 340 Nov. 2011 $600

TEAM 2012 SE 300 Q4 2012 Undisclosed

TEAM 2013 SE 500 Q4 2013 Undisclosed

CHK/ED/STO Pipeline SE 800 Q4 2013 Undisclosed

West-to-East/ Appalachian Lateral

NFG 500Phase I: 2011

Phase II: 2012 $750-$1,000

Appalachian Gateway D 500 Sep. 2012 $1,200

Marcellus Northeast D 300 Nov. 2012 Undisclosed

Equitrans EQT 1,100

Phase I: 2011

Phase II: 2012

Phase III: 2013

$650-$700

Keystone Connector WMB/D 1,000 2013 Undisclosed

New Penn NI 750 2012+ TBD

Total 6,945 $9,960

Project scalable.

Completed. Brings Marcellus supply to interconnects

with TETCO and Transco.

Completed.

Project scalable.

TEMAX 395 mmcf/d (customer is COP), TIME III 60

mmcf/d (customers are CNP, PPL).

Fully subscribed by EQT for 15 years.

Takes gas from northern Tioga County, PA to

Steuben County, NY.

Bring Marcellus supply to interconnect with

Millennium Pipeline.

"Capital costs and transportation/storage capacities

subject to final project scope."

16-mi pipeline extending TETCO into NYC, adding 5

miles of larger diameter pipe and adding facilities

along Algonquin. CHK commitment is 425 mmcf/d.



Interconnects w/ 5 major pipes in area, Phase I (100

mmcf/d), capacity 30% EQT/70% 3r d parties.



Up to 650 mmcf/d.

Notes

$169

PLS can put its resources to work to sellyour Midstream assets. Call (713) 650-1212



InternationalPipelines/Gathering

Incremental Marcellus Pipeline Capacity vs. Production

n Based on the TPH Gas Supply study, TPH looks for incremental overall Appalachiaproduction of ~3 bcf/d by the end of 2012… in line with announced pipeline capacity adds of 3.2 bcf/d.

n Reminder that pipeline capacity additions are inherently lumpy, with a lag time to build, then catch up as the pipe is filled.


TPH-Projected Appalachia Production (Incremental to August ’09 Production)vs. Announced Pipeline Capacity Additions.

Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12

bcf/

d

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

Boardwalk pipelines now shipping at regulatory capacityBoardwalk Pipeline Partners LP’s East Texas Pipeline, Southeast Expansion and

Gulf Crossing Pipeline have received Pipeline and Hazardous Materials SafetyAdministration authorization to operate at their full design capacity, Boardwalk announced

December 16.Previously, each of these 42-inch pipelines had been operating at 0.72

specified minimum-yield strength. Boardwalk (NYSE:BWP) recentlyannounced the sale of an additional 156 MMCFD capacity on the Haynesville Project under a15-year agreement, which is contingent on the approval now granted to operate at 0.80 SMYS.

The East Texas Pipeline originates near Carthage, Texas, and runs to Harrisville, Miss. TheSoutheastern Expansion project originates near Harrisville, Miss., and extends to an interconnectwith Transcontinental Pipe Line Co. in Choctaw County, Ala. (Transco Station 85). The GulfCrossing Pipeline originates near Sherman, Texas, and runs to the Perryville, La. area.

Boardwalk operates in the interstate gas transportation and storage system comprising~14,200 miles of pipeline, and underground storage fields of aggregate working capacity of~163 BCF.

Noble Energy will sell Tamarfield gas to IEC for 15 years

Noble Energy Inc. and its partners haveentered an agreement to sell gas from theTamar Field offshore Israel to the Israel

Electric Corp. Ltd. IEC expectsto purchase at least 95 BCFY, withpotential for more, for 15 years

from the Tamar startup.The annual revenue is estimated from

this deal at between $400 million and $750million, with total revenue for the 15 years at~$9.5 billion. First production of the Tamarproject is expected in 2012.

Noble (NYSE:NBL) and its partnershave so far signed intent agreements for gassales from Tamar consisting of ~$10.5 billionin total revenue. It estimates a total grossmean resource in the field of 6.3 TCF.

Per a separate intent agreement, IECwill buy gas from Noble for establishing astrategic reserve at Mari-B, whose partnerswould provide IEC with injection, storageand withdrawal capabilities for it in a relatedservice agreement.

Noble is the operator of the Tamar field,in the Matan license, with 36% WI. IsramcoNegev 2 has a 29% stake, Delek Drilling hasa 16% stake, Avner Oil Exploration has a16% stake, and Dor Gas Exploration has 4%.

Noble also operates the Mari-B with47% WI; in which Delek has a 26% interest,Avner holds 23% and Delek has 4%.

Uganda considers pipelineto Port of Dar es Salaam

The government is considering construc-tion of an oil pipeline to Tanzania’s Port ofDar es Salaam, amid its concerns regardingdelays of an export pipeline proposedthrough Keyna.

The governments of Uganda and Kenyahave been in talks about upgrading andextending the northward bound pipeline thattransports from the Port of Mombassa toEldoret, Uganda wants to reverse the flow tomove south; Kenya opposes this.

The Libyan state-owned companyTamoil East Africa contracted in 2008 toextend the pipeline 351 km, from Eldoret toKampala, but that 15-month constructionwon’t begin until April.

Tullow Oil PLC and Heritage Oil PLCfavor construction of a new line to Mombasa.Eni is aquiring $1.5 billion in license sharesfrom Heritage and has proposed a 100,000BPD refinery in Uganda that would connectto a new pipeline to Mombasa.

Incremental Production Incremental Capacity



MIDCONTINENTTULSA CO., OK GATHERING SYSTEMShutIn Pipeline With Equipment. 10 Sq Miles.OKLAHOMA SYSTEMSignificant CBM Exploration Within Acreage.Shallow Coal Seam Gas Production.Low Pressure-Stripper Plant-Sales Lines.100% OPERATED WI FOR SALE CBM/PIPEShutIn Pipeline: Raw Unleased AcreageSuitable To: Production & Pipeline BuyerOptimal Scenario: Buy Pipeline & DrillSELLER HAS SOLID RIGHT OF WAYS

G 5617PL

ROCKIES & DAKOTASWYOMING CBM DEVELOPMENT44-Active. 30-ShutIn.CAMPBELL & SHERIDANPOWDER RIVER BASINMultiseam Fort Union Coals: 700 Ft.Multiseam Fort Union Coals: 1,600 Ft.85 Additional Wells To Drill ($22MM).30 Wells Coming Online Early 2010.80% NonOperated WI; 60% NRIGross Production: 7.0 MCFD CBM Net Production: 3.0 MCFD DEVELOPMENTEst. Proved Reserves: 12.5 BCFEst. 3P Reserves: 62.4 BCFNet PV10 (3P): $121,800,000CONTACT SELLER FOR MORE INFO

DV 2645PP

WEST COASTPIERCE CO., WA PROSPECT4,320-Contiguous Acres.CARBONADO FORMATION CBMDrilling Depth: 4,000 FtGenerator Has Detailed Geology.Upside: Potential Frac Opportunity CBM SEEKING JV PARTNERSEstimated Reserves: 190 BCFPipeline Connection Nearby.Est 1st Well Cost: $400,000GENERATOR HAS MORE DETAILS

DV 2640

MULTISTATEMULTISTATE NON-OP PACKAGE12-States. 431-Total Properties.Significant Activity On Properties.53-New Wells Online Since January ’09.97-Total Operators. 128 BOPDNonOperated WI Available.Avg Net Prod: 128 BOPD & 1.1 MMCFDTotal Proved Rsrvs: 909 MBO & 8.1 BCFEstimated Total PV10: $46,642,000CONTACT AGENT FOR MORE INFO

PP 3612DV

Transneft launches new Pacific oil terminalIn December, Russia brought on stream an oil terminal at the port of Kozmino near the

Pacific city of Vladivostok. With the project, Russia endeavors to diversify exports from theWest as well as significantly augment its role with respect to Asian markets.

The terminal cost Russia’s state pipeline company Transneft $2 billion. The companyalso spent $12 billion connecting Siberian fields with an East Siberia pipeline, from whichcrude is sent to Kosmino by rail, and a pipeline spur goes to China. Another $10 billion wentto build a pipeline to Kozmino.

The first outbound shipment was a 100,000 ton tanker headed for Hong Kong, carrying“EPSO” crude from Russia’s first pipeline to China and the Pacific. The new terminal isRussia’s third largest oil port, behind Primorsk on the Baltic Sea and Novorossiisk on theBlack Sea.

Russia will export 3.1 MMT (250,000 BPD) of ESPO blend via Kozmino in Q1 2010;the country is the world’s top oil producer (as KSA adheres to OPEC supply curbs). Exportsmay increase to 600,000 BPD in the near term. The associated pipeline will be completed infour years.

Meanwhile, Gazprom expects to finalize a deal for gas supplies the from ExxonMobil-led Sakhalin-1 project this year, in response to demand from Far East industrial growth. TheSakhalin-1 ownership consortium also includes Rosneft, Itochu and Marubeni, and ONGC.

Gazprom wishes to buy as much as 8 BCMY from the second Sakhalin developmentstage. Gazprom will increase its estimated gas reserves at Kirinsky field, part of the Sakhalin-3 project from 75.4 BCM to 100 BCM, that it plans to commission in 2014.

Pipelines/GatheringBison gets affirmative FERC assessment

TransCanada Corp.’s Bison Pipeline LLC project, proposed in Wyoming, Montana andNorth Dakota, has received a tenable environmental impact statement from the Federal EnergyRegulatory Commission.

The proposed 30-inch, 301-mile gas pipeline would be designed to transport upto 477 MMCFD, and be built from the Powder River basin to a connection with theNorthern Border Pipeline in Morton County, N.D.

The FERC said significant environmental impacts of the TransCanada (NYSE:TRP) proj-ect, which includes 19 mainline valves, a com pressor station, two meter stations, and three piglaunching/receiving terminals, could be mitigated to acceptable levels.

The project would be co-located on existing rights of way along some 53 miles (17.6%)its length.

The capacity of the pipeline could be expanded to 1 BCFD, and future plans includeexpansion as well as extension into basins in the Rockies. Upon receiving requisite regulatoryapprovals, construction would begin this year with an in-service date of November 15.

Mackenzie pipeline clears major regulatory hurdleThe $16.2 billion Mackenzie Gas Project overcame a major hurdle in late December as

a years-overdue regulatory report was released. The panel appointed by the Canadian govern-ment examined the socio-economic and environmental effects of the pipeline.

The Mackenzie project proposal is for a 750-mile pipeline through the Mackenzie Valleyof Canada’s Northwest Territories, which would connect some dozen potential onshore gasfields with markets in North America. Among the Joint Review Panel’s 176 recommendationsare calls for government funding for environmental oversight.

The National Energy Board of Canada will now begin hearings in April, taking the panelsrecommendations under consideration, for ultimate consent to move forward with project con-struction. The project has been delayed for more than 30 years because of opposition on a mul-tiple of fronts.

The lead partner in the Mackenzie Gas Project is Imperial Oil LTD (AMEX:IMP)which includes its U.S. parent ExxonMobil Corp., ConocoPhillips and Dutch ShellPLC. TransCanada Corp. would feed gas from the Mackenzie line into its Albertapipeline network.

The joint review report will be considered along with the National Energy Board’s reportregarding the engineering and economics. Doubts regarding the project have grown, as U.S.gas sources are depressing the price projections of Mackenzie gas.

International

Search & SeekAccess www.plsx.com


www.plsx.com

Regional Spot Prices for Natural Gas

Spot Prices Thu. Fri. Mon. Tue. Wed.($ per MMBtu) 7-Jan 8-Jan 11-Jan 12-Jan 13-JanHenry Hub 7.51 6.55 5.77 5.57 5.61New York 11.12 14.09 8.10 6.76 6.39Chicago 7.33 6.22 5.86 5.72 5.66Cal. Comp. Avg.* 6.32 5.90 5.73 5.69 5.70

February Delivery 5.806 5.749 5.454 5.591 5.733March Delivery 5.756 5.712 5.432 5.552 5.704

*Avg, of NGI’s reported average for: Malin, PG&E citygate and Southern California Border.

Source: NGI’s Daily Gas Price Index (http://www.intelligencepress.com)

Estimated Average Wellhead PriceJul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

Price ($ per Mcf) 3.43 3.14 2.92 3.60 3.64 4.44

Price ($ per MMBtu) 3.33 3.05 2.84 3.50 3.54 4.31

Note: Prices were converted from $ per Mcf to $ per MMBtu using an average heat content of 1,029 Btu per cubic foot as published in Table A4 of the Annual Energy Review 2006.

Current Natural Gas Stocks by RegionEstimated Percent

Current One-Week Implied Net Prior 5-Year DifferenceStocks Prior Stocks Change from (2005-2009) From 5 Year

All Volumes in BcF 01/08/10 01/01/10 Last Week Average Average

East Region 1,532 1,678 R -146 1,526 0.4West Region 414 434 -20 361 14.7Producing Region 906 1,006 R -100 844 7.3Total Lower 48 2,852 3,118 R -266 2,731 4.4

Source: Energy Information Administration: Form EIA-912, “Weekly Underground Natural Gas Storage Report,” and the Historical Weekly Storage Estimates Database. Row and column sums may not equal totals due to independent rounding.

Source: Energy Information Administration, Office of Oil and Gas.

Second biggest storage draw in 17 yearsThe implied net withdrawal for the week ending January 8 was 266 BCF, the second

highest net weekly withdrawal since the data series began on December 31, 1993; the high-est was 274 BCF on the week that ended January 25, 2008.

Through January 8, significant price increases occurred because of cold weather andcontinued wellhead freeze-offs in parts of the United States – but when it warmed back upacross the lower 48 states between January 11-13, spot prices receded, according to theEnergy Information Administration. The largest weekly drops occurred in Florida andNortheastern markets; the Henry Hub spot price fell 86 cents (13%) to $5.61/MMBTU.

On the NYMEX, the futures contract for February delivery at the Henry Hub endedtrading January 13 at $5.733/MMBTU, falling 28 cents (5%) during the report week.

The spot price for West Texas Intermediate Crude decreased by $3.46 since January 6,to $79.66/bbl.

PricingInternational

North Dakota sweet crude brought $68.63on January 4 – about $12 less per barrel sold onthe NYMEX, as a result of the bottleneck inBakken’s field-to-market infrastructure.

The new Enbridge capacity, as well asEOG’s crude train, are expected to immedi-ately impact N.D. crude prices.

Enbridge CONTINUED from page 1

ExxonMobil shopping itsGassled midstream system

ExxonMobil is marketing its 9.4% stakein Norway’s Gassled, which owns Norway’sgas transport system, though reportedly intendsnot to reduce its Norwegian shelf activities.

An Exxon-Norway spokesperson saidthey, as a matter of ongoing portfolio optimiza-tion efforts, are marketing the stake just to seeif they can sell it. This move arrives a year afterExxon as well as other foreign minorityGassled owners such as Total, Shell, Conoco -Phillips and Eni accused the Norwe gian gov-ernment of disproportionately allowing Petoroand Statoil to influence Gassled policy andoperations.

Gassled is a joint venture between oil andgas companies on the Norwegian continentalshelf, and owns the integrated North Sea gastransport system that carries almost 100BCMY of Norwegian gas to Europe.

Upwards of 70% of Gassled is controlledby majority state-owned Statoil, and state-owned Petoro. The foreign companies made ittough for them to give influence on strategicnew field and pipeline decisions.

Exxon is the second largest producer inNorway, after Statoil. Exxon’s output is~400,000 BOED.

Gassled has been in operation since 2003;Gassco runs the 4,847-mile gas pipeline sys-tem, some onshore facilities and platforms onbehalf of the owners, which are Petoro at 39%,Statoil at 32%, ExxonMobil at 9%, Total at 8%,Shell at 5%, Norsea Gas at 3%, ConocoPhillipsat 2%, Eni at 2% and DONG Energy at 1%.

NGP Capital Resources CompanyProviding Capital to the Energy Industry

(713) 752-0062 www.ngpcrc.com

PLS Fax: (713) 658-1922



LNG

Note: The West Texas Intermediate (WTI) crude oil price, in dollars per barrel, is converted to $/MMBtu using a conversion factor of 5.80 MMbtu per barrel. The dates marked by vertical lines are the NYMEX near-month contract settlement dates.

NYMEX Natural Gas Futures Near-Month Contract Settlement Price, WTX Intermediate Crude Oil Spot Price & Henry Hub Natural Gas Spot Price

Source: U.S. Energy Information Administration

Jordan Cove LNG terminal gets FERC approvalThe $2.5 billion Jordan Cove Energy Project was approved in December by the Federal

Energy Regulatory Commission. The import terminal project is designed in response to grow-ing gas demand in the Pacific Northwest. It’s located in the Coos Bay, Ore., to provide up to1 BCFD. The 234-mile Pacific Connector pipeline, also approved by the FERC, would trans-port the terminal’s gas to the Oregon-California.

The project is owned by a subsidiary of Fort Chicago Energy Partners LP (TSE:FCE.UN)and the pipeline is joint owned by The Williams Companies (NYSE:WMB) and Fort Chicago.Project sponsors aim to have the terminal and pipeline operations on stream during 2014.

Oregon Gov. Ted Kulongoski will file a rehearing request on January 19 with the FERC,seeking further environmental impact consideration, who also indicated he intends to followall administrative options before taking his case to federal appellate court.

The state also pursued similar means on similar grounds in January 2009, some threemonths after the FERC issued approval of the Bradwood Landing LNG terminal and pipelineproject for Clatstop County.

Court upholds LNG project water quality permit denialA federal appeals court has upheld Maryland’s denial of a water-quality permit for an LNG

terminal proposed in eastern Baltimore County, halting the $400 million project indefinitely.The terminal and its related 88-mile pipeline were approved by the Federal Energy

Regulatory Commission, but The AES Corp. (NYSE:AES) project cannot proceed without statepermits. The company intends to continue pursuing the permits, and may ask for a rehearing.

The project is proposed at the site of the former Sparrows Point shipyard. Before tankerscould navigate the harbor, AES would have to dredge a 45-foot deep approach channel and118-acre turning basin.

The President of the Baltimore Building and Construction Trades Council, Rod Easter,expressed extreme disappointment in the ruling. “In these economic times, when you’ve gotan opportunity for 400 jobs in clean energy, it’s mind boggling to me the state is still pursuingthese frivolous lawsuits,” he said.

• China National Petroleum Corp.signed with Myanmar’s energy ministry anagreement for exclusive construction andoperations rights for the proposed 771-km,12 MTY initial capacity Myanmar-to-Chinacrude pipeline. The deal grants operatingconcession to the CNPC-controlled South-East Asia Crude Oil Pipeline Ltd., includingtax concession and customs clearance rights.It also stipulates the Myanmar governmentguarantees the CNPC’s ownership andexclusive operating rights, and pipelinesafety. CNPC in October started building aport in western Myanmar as part of theproject. The pipeline will run between MadayIsland in western Myanmar and Ruli in thesouthwestern Chinese province of Yunnan.

• The National Development Bank ofBrazil will provide the majority of financingfor a ~$361 million gas pipeline network inArgentina’s Cordoba province. In partnershipwith Argentina construction companiesBritos and Iecsa, Brazil’s ConstructoraAndrade Gutierrez will construct 1,667 kmof pipeline to serve 400,000 people. BNDESwill provide ~$300 million for the project. Theconstruction companies have secured a bankloan covering the rest. They are 10-year loanswith two-year grace periods, carrying annualrates of 7.07%.

• Canada’s Pacific Rubiales Energy Corp.will pay Colombia-based Oleoducto CentralSA (Ocensa) $190 million for use of itspipelines system. Per the deal, Pacific Rubialestook preferential rights for transporting 160million bbl oil for 10 years starting February 1.

International Briefs

“Forming the Keystone Midstream jointventure significantly reduces Rex Energy’scapital investment in necessary infrastructurein Butler County and leverages the extensivemidstream experience of the Stonehengemanagement team,” said Rex Energy CEOBenjamin W. Hulburt.

Rex & Stonehenge CONT. from page 1

Property Tax AppraisalsProperty Tax AppealsDue Diligence ReviewsPurchase Price AllocationsIndependent AppraisalsSales & Use Tax Reverse Audits

Kevin Jones • [email protected] 469-298-1594 • www.keatax.com



Fayetteville Express Pipeline Project Map

6

Pipeline Length: 185 milesPipe Diameter: 42”Initial Capacity: 2.0 Bcf/d1.85 Bcf/d Sold

Source: Fayetteville Express Pipeline LLC (www.fepipeline.com)

The plan also includes the 71,465 HP compressor station at Russell; 15 receipt metersproposed in Arkansas; and four interconnects, with NGPL, ANR Pipeline Co., Texas GasPipeline, and Trunk line Gas Pipeline.

The Energy Information Adminis tration’s pipeline report in September indicatedpipeline infrastructure expansion activity in the continental United States has been elevatedfor at least 10 years, and likely will remain so in the near term, through 2011, as well. Mostof that ongoing growth will be dedicated to increasing capacity from the Rocky Mountainsand Mid-Continent developing production for major Eastern U.S. markets.

Gas capacity added in 2008 totaled 45 BCFD – significantly higher than additions ofprior years, going back to at least 1998. The current 180-proposal inventory for 2009-2011would bring an additional 94 BCFD capacity to the grid with average capacity of ~575MMCFD per project. Projects in the near term account for more than 10,200 miles of poten-tial new gas pipeline, and are largely centered around new supply sources, as in the RockyMountains and northeast Texas producing areas.

The EIA also forecasts domestic production, particularly from unconventionalresources, to keep showing gains in the long term. Tight sandstone formation gas is thebiggest source of unconventional production. The EIA estimates to make up 29% of all U.S.production in 2030, and with production from shale formations as the fastest growing source– expected to grow to 3.7 TCFY.

$1.3 billion, 185-mile Fayetteville pipeline CONTINUED from page 1

Its North Dakota system currently produces ~250,000 BPD. Crude from the Bakkenshale in western North Dakota is discounted by upwards of $10/bbl due to challenges ingetting it to market.

Additionally, EOG’s Pecan Pipeline North Dakota Inc. expects to begin transport thismonth, via the $45 million Prairie Rose Pipeline, feeding North Dakota NGL-rich gas to aChicago hub instead of flaring it.

EOG starts shipping Bakken crude by rail CONTINUED from page 1People Briefs• Chesapeake (NYSE:CHK) Midstream

Partners LLC announced hiring David C.Shiels as the company’s CFO.

• Quest Resource Corp. has announcedthe appointments of Tom A. Saunders as

Executive VP for new businessdevelopment and marketing of

Quest Midstream; David K. Pinson as VP ofland; Lance J. Galvin as VP of Quest EasternResource; and Cathy L. Pocock as VP ofCommercial Development and Marketing forQuest Midstream.

• CVR Energy Inc. (NYSE:CVI) named ReedCopeland as VP of crude oil logistics for theCoffeyville Resources Crude Transporta -tion LLC subsidiary. Bill Whitewill be VP ofmarketing at the Coffeyville ResourcesNitrogen Fertilizers LLC subsidiary.

• Holly Energy Partners LP (NYSE:HEP)announced the promotion of David G. Blairfrom Senior VP to President, effective

January 1, 2010.• Linn Energy LLC (NASDAQ:LINE)

has announced Mark E. Ellis is its newPresident and CEO, succeeding Michael C.Linn, with Linn remaining as ExecutiveChairman to focus on long-term strategy.

10355 Westmoor Dr., Ste. 250 • Westminster, CO 80021 • Phone: 303-991-1480 • Fax: 303-451-7394

STONEHENGE is an asset-backed midstream company that offers considerable engineering, operatingand financial resources that can be applied to the midstream needs of natural gas producers.

www.StonehengeEnergy.com

Chuck Wilkinson, PresidentDirect: 720-889-9933 • [email protected]

Richard Carl, Director, Business DevelopmentDirect: 720-889-9953 • [email protected]

Mike Brinkmeyer, Director, New VenturesDirect: 720-889-9940 • [email protected]

Our mission is to support our customers in the production of their natural gas and liquids by:

• Maximizing the value received for the produced gas.• Responding quickly to new facility needs• Maintaining industry-best online times• Maintaining an inventory of processing equipment to

accelerate project development

We have technical and financial backing fromthree proven companies:

• Energy Spectrum Capital, a leading private equity firm• Kahuna Ventures, a full service midstream engineering consulting firm• Kahuna Operating, a midstream facility operator

Oil & Gas Assets for Sale - MIDSTREAM NEWS · 2011-08-16 · Crude production exceeds existing...

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Transcript of Oil & Gas Assets for Sale - MIDSTREAM NEWS · 2011-08-16 · Crude production exceeds existing...