Penn Virginia Resource Partners LP, Radnor, Penn., (NYSE: PVR) has acquired a natural gas gathering system and processing facility in the Texas panhandle area. The "Antelope Hills" assets acquired by PVR consist of a 20 MMcf/d cryogenic processing facility and an approximate 15-mile gathering system in Lipscomb and Hemphill Counties. The acquired assets, which are connected to PVR's existing Panhandle Systems, are strategically located to serve active producers in the Granite Wash formation. The purchase price for the acquired assets was $11.44 million.
This acquisition is an integral part of a larger PVR Panhandle Systems expansion plan which will involve the expansion of the Antelope Hills processing facility to a new total capacity of 70 MMcf/d, as well as additional gathering system enhancement and optimization. The planned expansion will involve an additional investment of approximately $35 million over the next twelve months, and will increase PVR's Panhandle total processing capacity to 330 MMcf/d.
"PVR is pleased to announce these strategic asset acquisitions and growth opportunities," says William H. Shea, Jr., chief executive officer. "The Antelope Hills plant acquisition provides some immediate relief to current capacity constraints in our Texas Panhandle operations, and the plant expansion project will support the expected continuing growth in volumes from the active drilling programs by producers in our footprint in the Granite Wash. We currently anticipate the Antelope Hills plant expansion to be completed and in operation in the second quarter of 2012."
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