Enogex Inc. and Amarillo, TX-based producer Pablo Energy II LLC plan to gather and process natural gas from the Woodford Shale in southeastern Oklahoma through a new joint venture partnership, Atoka Midstream LLC, which is scheduled to begin operating in April.
The joint venture between newly formed subsidiaries Enogex Atoka LLC and Pablo Gathering initially plans to process all of the natural gas produced by Pablo Energy's operating wells in Atoka and Coal counties. Production from an estimated 20 wells initially will be processed, with about 18 miles of new pipe operational by July, the partners said. Plans for increasing the processing capacity also are under way. Enogex Atoka will be the managing member and operator of the gathering and processing facilities.
"This partnership allows both companies to grow their businesses in the promising Woodford Shale, an area that currently lacks gas-gathering and processing infrastructure," said Enogex COO Danny Harris. "It is a model we expect to apply to future business opportunities."
Enogex operates a natural gas pipeline system with 8,300 miles of pipe, six processing plants, and 23 Bcf of gas storage capacity, principally in Oklahoma. According to a Securities and Exchange Commission Form 10-Q filing for 1Q2006, Dominion Resources Inc. acquired Pablo Energy LLC for $92 million in cash from cattle operation Cactus Feeders in February 2006. The filing indicated Pablo's operations are included in the Dominion exploration and production segment, which Dominion is selling (see Daily GPI, Feb. 1).
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