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Burlington, ECT Build Wind River Gathering

Burlington, ECT Build Wind River Gathering

Burlington Resources has joined forces with Enron Capital & Trade Resources Corp. in a gas gathering partnership that will serve the Wind River Basin in Wyoming, which has suffered from processing and transportation constraints in recent years.

The two companies have formed Lost Creek Gathering Co. L.L.C. to build a new 124-mile, 24-inch diameter wet gas gathering header from the Madden Field in central Wyoming to a processing plant located near Wamsutter, WY. The processed gas will then be delivered into Colorado Interstate Gas' and Wyoming Interstate Co.'s mainline transportation systems. First deliveries are expected in the first quarter of 2000. Burlington will retain a 65% operating interest in the partnership, while ECT will hold the remaining 35% share.

"This project will provide increased gathering flexibility in central Wyoming. It is of particular interest to BR because it complements and enhances our future development plans at the Madden Field," said Burlington CEO Bobby Shackouls.

Over the next year, sharp production growth is expected out of the Wind River, particularly the Madden Field. Gas coming out of Madden is expected to rise to 240 MMcf/d by year-end from only 130 MMcf/d in 1998 and 105 MMcf/d in 1997. Burlington holds about 37% of that gas, most of which is coming from the deep Madison formation and the shallower Lower Fort Union and Lance formations. The gas coming out of the deeper formations requires removal of carbon dioxide and hydrogen sulfide at the Lost Cabin Gas Plant, which Burlington plans to expand to handle 130 MMcf/d of gas by the fourth quarter.

Kevin Hannon, President and COO of Enron Capital & Trade said the partnership is a "unique opportunity to combine the strengths of the largest natural gas marketer in the U.S. and one of the largest independent gas producers in the U.S. We look forward to working with natural gas producers in the Wind River Basin to provide this much needed gathering service and access to competitive markets." Enron will be responsible for marketing all the capacity on the gathering system that is not used for Burlington's production.

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