Meritage Midstream to expand Eagle Ford Shale Escondido gathering system to support Swift natural gas production

Source: Meritage Midstream

Meritage Midstream Services entered into an agreement with Swift Energy Company (NYSE:SFY) to provide natural gas gathering and treating services in the Eagle Ford shale region of South Texas.

The 25-mile pipeline project includes two lateral extensions to Meritage Midstream’s Eagle Ford Escondido Gathering System in Webb County, Texas: a 14.5-mile-long, 12-inch-diameter pipeline to the northwest into Swift’s Fasken operating area and a 10.5-mile-long, 16-inch-diameter extension to the southeast to increase takeaway capacity. Meritage will expand treating capacity at its South Calahan facility as volumes on the gathering system increase.

Meritage Midstream designed the gathering system to provide producers with access to multiple markets.

“We built the Eagle Ford Escondido Gathering System with producers like Swift in mind,” said Steve Huckaby, president and CEO of Meritage Midstream. “Producers need the ability to get their gas to market quickly and efficiently. Our objective is to maximize the value of their gas and ensure that producers have access to the transmission capacity they need.”

“We look forward to continuing to work with Meritage as we increase drilling and production activities in the Eagle Ford shale,” said Terry Swift, CEO of Swift Energy. “The agreement and others reduce Swift Energy’s exposure to the continuing tightness of gathering outlets facing operators in South Texas. We expect an increase in operating activity in 2011 and have taken numerous steps to ensure that we can drill, complete and produce our wells without interruption due to third party service constraints. Contracting with Meritage Midstream for gas gathering and treating services is one of those steps.”

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