Source: Eagle Rock Energy Partners
Eagle Rock Energy Partners (Nasdaq:EROC) has begun commercial operations at its recently-installed Phoenix natural gas processing plant in the Texas Panhandle.
The refurbished Stinnett Plant was renamed the Phoenix Plant, and now serves as a high-efficiency cryogenic plant located in the Granite Wash Play. Capable of handling 80 MMcf/d of inlet gas volumes, the Phoenix Plant will initially be sized with sufficient compression to handle 50 MMcf/d but may easily be expanded to its full 80 MMcf/d with additional inlet, field and residue compression.
"With the installation of the new Phoenix Plant, Eagle Rock will be able to provide enhanced recoveries of condensate and NGLs to its current and future customers in the Granite Wash Play of Hemphill, Roberts and Wheeler Counties, Texas as they expand their drilling footprints,” said Joseph Mills, chairman and CEO of Eagle Rock.
Also, Eagle Rock has completed the previously announced acquisition of certain natural gas gathering systems and related facilities located primarily in Wheeler and Hemphill Counties in the Texas Panhandle for approximately $27.0 million, subject to post-closing adjustments.
The acquired assets include over 200 miles of gathering pipeline and related compression and dehydration facilities, together with gas gathering contracts, rights of way and other intangible assets.
The acquired assets are highly complementary to Eagle Rock's existing Panhandle system. In combination with the start-up of the Phoenix processing plant, the acquired assets enhance Eagle Rock's ability to offer highly-efficient processing services to producers in the core of the prolific Granite Wash play.