Coastal Grows Gulf Presence
Coastal Field Services Co. made a small increase in its
interests in Gulf of Mexico Mobile Bay area and gained the company
option to increase its share significantly more.
A purchase - through affiliate Coastal Dauphin Island Co., LLC -
was made from entities controlled by Titan Exploration Inc., whose
subsidiaries earlier had sold Coastal all of its Gulf of Mexico
exploration and production assets.
Coastal's exploration and production subsidiary, Coastal Oil
& Gas Corp. (COG), is a significant producer in the eastern
Gulf's Main Pass and Viosca Knoll producing regions. Main Pass
production is 100 MMcf/d and is transported on the Dauphin Island
Gathering System (Coastal Dauphin ownership 14.6%) onshore to
Coden, AL. COG also supplies a significant portion of the current
volume throughput in the Mobile Bay Processing Plant (Coastal
Dauphin ownership 14.4%). Extracted liquids are transported in the
partially-owned Tri-States Pipeline.
The transaction provides CFS an approximate 1% additional
interest in the partnerships that own the Mobile Bay Processing
Plant and Cogeneration Facility near Coden, the offshore Dauphin
Island Gathering System, and the onshore Tri-States gas liquids
pipeline. It also provides CFS the right to acquire, through
Coastal Dauphin, an additional 28% in the processing plant and
cogeneration entity as well as an additional 5% in the gas liquids
pipeline entity. Coastal Dauphin previously had owned about 13.6%
of the partnerships.
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