Hoover Energy Partners LP Acquires Midstream Assets, Commences Pipeline Construction In Permian

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
0MM
Description

Bought 50-mile gas-gathering system, water-transportation system and water-disposal well in Reeves County, TX.

HOUSTON -- Hoover Energy Partners LP announced on Jan. 12 that it has acquired a 50-mile natural gas gathering system, water transportation system and water disposal well located in Reeves County, Texas from Eagle Oil & Gas.

This system is underpinned by a long-term dedication of approximately 68,000 gross acres that Comstock Resources, Inc. (NYSE: CRK) recently acquired from Eagle Oil & Gas. Additionally, Hoover announced it has begun construction on Phase I of Pecos Crossing Pipeline, a 24-mile 12” crude oil system that will serve Ward and Reeves counties, Texas and will have a capacity of up to 120,000 bpd. Both assets are located in the heart of the Bone Spring and Wolfcamp (Wolfbone) plays of the Delaware Basin.

“Hoover Energy Partners has shifted into high gear with the Eagle acquisition and construction of Pecos Crossing,” said Randy Hoover, President of Hoover Energy Partners. “We see 2012 as the year that Hoover will emerge as the premier midstream company serving producers targeting the Wolfbone play in Reeves and Pecos counties. Additional growth projects will be announced in the coming months.”

The Pecos Crossing Pipeline is scheduled to be operational in April 2012 and will be the first crude oil pipeline operating south of the Pecos River. At its northern terminus, Pecos Crossing will deliver to Plains All American Pipeline’s (NYSE: PAA) newly constructed Barstow Station. At the southern terminus, Hoover will serve the Perry Ranch Station, a newly constructed truck loading and tank terminal.

Multiple producer and Hoover owned laterals will continue to be constructed and connected as the Wolfbone is developed. Phase II of Pecos Crossing is being contemplated as the Wolfbone play extends south into Pecos County, Texas where Hoover’s legacy 550-mile natural gas gathering system and treating facilities are located.