2011-03-08-2011-01-18-2011-03-01

Acquired Fort Lupton gas-processing plant in CO D-J Basin, consisting of 2 cryogenic processing trains with 84 MMcf/d of total capacity & 2 fractionation trains with total capacity of 7,900 Bbls/d plus 1,054 miles of pipeline & 18 compressors.

Western Gas Partners LP (NYSE: WES) has completed the acquisition of certain midstream assets in the Denver-Julesburg Basin in northeastern Colorado from Encana Oil & Gas (USA) Inc., a subsidiary of Calgary-based Encana Corp. (NYSE; Toronto: ECA), for approximately US$303.3 million.

The assets include Encana's Fort Lupton gas-processing plant, which is adjacent to Western Gas' Fort Lupton plant. The Encana plant, currently flowing at capacity, consists of two cryogenic processing trains with 84 million cubic feet per day (MMcf/d) of total capacity and is currently being expanded to 100 MMcf/d. The plant also has two fractionation trains with total capacity of 7,900 barrels per day.

Western Gas will also purchase five gathering systems that consist of approximately 1,054 miles of pipeline, 18 compressors with a total of 14,306 horsepower, and other related assets. Two of these gathering systems are connected directly to Encana's Fort Lupton plant, while the other three gathering systems deliver natural gas to Encana's Fort Lupton plant via Western Gas' Wattenberg Gathering System.

Encana USA has owned and operated the plant since 2000 when one of its predecessor companies acquired the facility as part of a larger acquisition of exploration and production assets.

As part of the acquisition, Western Gas will enter long-term, fee-based agreements with Encana to gather and process existing gas production, as well as to expand the existing gathering systems and processing capacity to meet future needs in the basin.

Western Gas financed the acquisition with available capacity under its $450-million revolving credit facility.