EagleClaw Midstream Ventures, LLC entered a definitive agreement to acquire PennTex Permian LLC, which has a cryogenic processing plant and pipelines in the Permian Basin.

PennTex Permian is a wholly owned subsidiary of PennTex Midstream Partners LLC.

The processing plant, which is in Reeves County, Texas, can handle 60 million cubic feet per day (MMcf/d) of natural gas. There are about 90 miles of gathering pipeline and about 35 miles of condensate pipeline.

EagleClaw said the acquisition is likely to be completed in the third quarter of 2016.

EagleClaw will connect the PennTex system to its East Toyah System, bringing EagleClaw’s current processing capacity to 120 MMcf/d and total gathering pipeline to more than 200 miles served by nine field compressor stations.

The combined systems serve producers in the Delaware Basin, targeting stacked pay zones including the Upper and Middle Wolfcamp, Bone Spring and the Avalon Shale formations.

EagleClaw also said it broke ground on the installation of an additional cryogenic processing plant at its East Toyah Processing Complex in Reeves County. These wells include the last two wells drilled by Silverback Exploration LLC, each with IP rates of about 7 MMcf/d of natural gas and 820 barrels per day of crude oil.