Wednesday, January 18, 2012
Hoover Energy Partners buys Permian Basin assets, building crude oil pipeline
HOUSTON, Texas - 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.
The Eagle 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 the Pecos Crossing Pipeline, a 24-mile, 12-inch crude oil system that will serve Ward and Reeves counties, Texas, and will have a capacity of up to 120,000 b/d. Both assets are located in the heart of the Bone Spring and Wolfcamp 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."
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 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.