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Coastal Grows Gulf Presence

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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ISSN © 2577-9877 | ISSN © 1532-1231
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