In the latest of several joint investments, JPMorgan Partners (JPMP), a private equity affiliate of JPMorgan Chase & Co., and the principals of Bear Cub Energy LLC, Thomas J. Edelman and Robert J. Clark, has purchased the East Texas gas gathering and processing assets of Hanover Compressor for $50 million. The two investors have formed Madisonville Gas Processing LP to acquire the assets, which are located in Madison County, TX, adjacent to the Madisonville Gas Field, which is about 100 miles north of Houston. JPMP and Bear Cub anticipate providing significant growth capital to expand the processing capacity at the site and pursue add-on acquisitions and other growth opportunities in the midstream sectors. "This initial investment will allow Madisonville to add significant processing capacity at the field, as well as positioned it to be a larger player in the midstream sector," said Christopher Behrens, a partner JPMP. This is JPMP's third investment with the principals of Bear Cub. The first two investments were Bear Paw and Patina Oil & Gas. Bear Cub Chairman Thomas J. Edelman said, "Despite the rapid run-up in the price of midstream assets, we remained convinced that opportunities for profitable investment in the sector continue to exist if one is able to work closely with producers and can materially enhance operating efficiency."
Tulsa-based Kaiser-Francis Oil Co. has joined SemGas L.P. as a partner in construction of the high-deliverability 6 Bcf Wyckoff Gas Storage project in Steuben County, NY. The companies said Kaiser-Francis purchased 49% stake in Wyckoff, which SemGas purchased from Falcon Storage earlier this year. The storage project already has a FERC certificate. The companies said they plan to bring the project into service rapidly with 250,000 Dth/d of deliverability next year. Several Northeast pipelines will be connected to the salt cavern, including Columbia Gas Transmission, Tennessee Gas Pipeline, National Fuel and the proposed Millennium Pipeline, which is projected to begin serving New York in November 2007. SemGas and Kaiser-Francis are assessing a second phase expansion that would bring Wyckoff deliverability to 450,000 MMBtu/d.
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