JP Energy Partners LP (NYSE: JPEP) signed a 10-year fee-based gathering agreement with Discovery Natural Resources LLC to construct and operate an extension of its Silver Dollar Pipeline, the company said Feb. 6.
The extension, consisting of about 55 miles of pipeline, will now go into the Midland Basin’s core. It will run from southern Reagan County, Texas, north into Glasscock County.
The roughly-$36 million project is scheduled to be completed in 2015’s second half. Proceeds will initially fund the revolving credit facility, the company said.
The agreement is supported by a total of 53,000 acres in Glasscock, Irion, Reagan and Sterling counties, the company said. JP Energy will provide oil trucking and other services for Discovery, the company added.
“The Midland Basin is a key area of focus for JP Energy, and we believe that our Silver Dollar Pipeline is a strategic and well-positioned crude oil gathering system. We are excited to use the market knowledge we have gained through our existing operations in the Permian Basin and Eagle Ford to partner with Discovery and further expand our comprehensive crude oil midstream solution,” said CEO J. Patrick Barley.
“We expect that as Discovery and other producers continue to develop the Spraberry, Wolfberry and Wolfcamp plays of the Midland Basin, JP Energy’s locational advantages and broad range of logistical capabilities will prove valuable to both the producer community and downstream customers in the crude oil markets.”
JP Energy Partners LP is an Irving, Texas-based midstream MLP.
Recommended Reading
For Sale, Again: Oily Northern Midland’s HighPeak Energy
2024-03-08 - The E&P is looking to hitch a ride on heated, renewed Permian Basin M&A.
Gibson, SOGDC to Develop Oil, Gas Facilities at Industrial Park in Malaysia
2024-02-14 - Sabah Oil & Gas Development Corp. says its collaboration with Gibson Shipbrokers will unlock energy availability for domestic and international markets.
E&P Highlights: Feb. 16, 2024
2024-02-19 - From the mobile offshore production unit arriving at the Nong Yao Field offshore Thailand to approval for the Castorone vessel to resume operations, below is a compilation of the latest headlines in the E&P space.
E&P Highlights: Feb. 26, 2024
2024-02-26 - Here’s a roundup of the latest E&P headlines, including interest in some projects changing hands and new contract awards.
CEO: Continental Adds Midland Basin Acreage, Explores Woodford, Barnett
2024-04-11 - Continental Resources is adding leases in Midland and Ector counties, Texas, as the private E&P hunts for drilling locations to explore. Continental is also testing deeper Barnett and Woodford intervals across its Permian footprint, CEO Doug Lawler said in an exclusive interview.