Azure Midstream Partners LP (NYSE: AZUR), a midstream natural gas gathering and processing company based in Dallas, Texas, has completed two new deals with producers totaling 32,000 Mcf/d.
The first is a four-year, fee-based deal with an independent producer in East Texas that is working to grow its acreage position to build on the 15,200 acres it already operates in Panola County, Texas. This producer currently has one rig active in the county drilling two horizontal Haynesville wells. Based upon the initial production results of these two wells and forward commodity prices, the producer has plans to drill additional wells in 2016. Minimal capital cost was required to facilitate delivery into the Azure gathering system.
The second is a five-year fee-based deal in the Waskom, Texas, area with a producer that has a well producing 9.2 Mcf/d. This producer is currently evaluating drilling offsets and has been working to acquire additional acreage in the area. This well is one of the first horizontal Cotton Valley wells in the Harrison County area.