Enterprise Products Partners LP said it plans to build an 80-mile extension of its 350,000 b/d Eagle Ford Shale crude oil pipeline, which would allow the partnership to serve production in the southwestern portion of the play. The Phase II project would originate in Wilson County, TX, at the terminus of the previously announced 140-mile Phase I segment, and extend to near Gardendale, TX, in La Salle County, where a new central delivery point is planned that would feature 500,000 bbl of storage. Phase I is on schedule to begin service by the second quarter of 2012 with Phase II set to commence operations in the first quarter of 2013. When completed, the approximately 220-mile crude oil pipeline system would provide Eagle Ford producers with access to the Texas Gulf Coast refining complex through Enterprise's network. The Phase II extension, which is being designed with a capacity of 200,000 b/d, is anchored by a 10-year agreement with Chesapeake Energy Marketing Inc., which has committed to 100,000 b/d of firm capacity.
Legend Production Holdings LLC and equity sponsor Riverstone Holdings LLC closed their acquisition of Range Resources Corp.'s Barnett Shale assets in the Fort Worth Basin for $900 million. The assets include 390 producing wells and about 52,000 net acres, 80% of which are in the core area of the Barnett. Net production was 113 MMcfe/d (86% gas) as of Feb. 1, the effective date of the purchase (see Shale Daily, March 7a; March 7b). The deal marks Legend's entry into the horizontal Barnett Shale, making it the fifth largest producer in the play. Legend now owns an interest in about 800 operated, producing wells in the Fort Worth Basin, the Permian Basin and South Texas. Range said proceeds have been applied to fully retire debt under its revolving credit facility. "Today, Range has the strongest balance sheet in our history with cash on hand and no amount outstanding on our $1.5 billion bank credit facility," said CEO John Pinkerton.
Capstone Turbine Corp. and its local distributor in the Barnett Shale of South Texas have received orders for 40 Capstone C65 microturbines since last August, Capstone said. The latest order for 22 low-emission microturbines will provide prime power to central processing facilities and metering stations at remote well sites in the Eagle Ford.