An affiliate of Oklahoma City-based Warwick Energy Group has agreed to buy R/C Sugarkane LLC from Riverstone/Carlyle Global Energy and Power Fund IV LP. R/C Sugarkane is a private upstream oil and gas company with nonoperated working interests made up of about 6,000 net acres in a core, liquids-rich window of the Eagle Ford Shale, and with about 3,000 boe/d of net daily production. ConocoPhillips acts as operator on nearly all of the acreage. Warwick CEO Katherine Richard said the acquisition "is part and parcel to our core strategy of acquiring, consolidating and developing longlived U.S. gas reserves, primarily in unconventional reservoirs." The deal is expected to close in early May. Investment funds managed by Warwick own interests in more than 5,000 wells in 13 states focused on onshore U.S. gas and oil acquisition, exploration and production.
Azure Midstream Energy LLC has begun operations at the Fairway gas processing plant in San Augustine County, TX, serving production from the James Lime formation in the Haynesville Shale area in East Texas. Dry gas exiting the plant will travel on Azure's East Texas gathering system for delivery into interconnections with Gulf South's 42-inch diameter pipeline, CenterPoint Energy Gas Transmission's 42-inch diameter line near Carthage, Gulf South's 30-inch diameter pipeline at Milam, and Azure's interconnection with the facilities of Natural Gas Pipeline Company of America in Nacogdoches County, TX. Natural gas liquids recovered by the Fairway plant will be trucked to fractionation facilities in East Texas, South Louisiana, or Mont Belvieu, TX.