Eagle Rock Energy Partners LP (Nasdaq: EROC) has announced the successful startup of its previously announced 60 MMcf/d cryogenic processing facility in Wheeler County, Texas, in the heart of the prolific Granite Wash play.
The Wheeler Plant, which includes the associated Mills Ranch Compressor Station, is strategically located on an approximately 50-acre site owned by Eagle Rock in the center of the partnership's existing high-pressure gathering system near multiple residue gas pipeline outlets. Eagle Rock also constructed other intra-system pipeline enhancements in the immediate area to further facilitate product gathering, transportation and marketing to and from the Wheeler Plant. The supporting infrastructure and plant site were designed to accommodate one or more additional expansions.
With the completion of the Wheeler Plant, Eagle Rock will have in excess of 500 MMcf/d of high efficiency cryogenic processing capacity serving the Granite Wash play.
The construction of the facilities, associated gathering and pipelines cost approximately $65 million. In addition, the Partnership will receive pro forma credit for the projected cash flows associated with the Wheeler Plant under the terms of its senior secured credit facility, when calculating its Total Leverage Ratio, for the quarter ended June 30, 2013 and the three subsequent quarters.
Recommended Reading
Matador Touts Cotton Valley ‘Gas Bank’ Reserves as Prices Increase
2025-02-21 - Matador Resources focuses most of its efforts on the Permian’s Delaware Basin today. But the company still has vast untapped natural gas resources in Louisiana’s prolific Cotton Valley play, where it could look to drill as commodity prices increase.
SM’s First 18 Uinta Wells Outproducing Industry-Wide Midland, South Texas Results
2025-02-20 - Shallow tests came on with 685 boe/d, 95% oil, while deeper new wells averaged 1,366 boe/d, 92% oil, from two-mile laterals, SM Energy reported.
Occidental to Up Drilling in Permian Secondary Benches in ‘25
2025-02-20 - Occidental Petroleum is exploring upside in the Permian’s secondary benches, including deeper Delaware Wolfcamp zones and the Barnett Shale in the Midland Basin.
Comstock Doubling Rigs as Western Haynesville Mega-Wells’ Cost Falls to $27MM
2025-02-19 - Operator Comstock Resources is ramping to four rigs in its half-million-net-acre, deep-gas play north of Houston where its wells IP as much as 40 MMcf/d. The oldest one has produced 18.4 Bcf in its first 33 months.