Caledonia Energy Partners has reached an exclusive agreement with Nicor Inc. subsidiary Nicor Enerchange LLC, which will provide marketing support for the development of a 10 Bcf storage facility to be located in Caledonia, MS.

Nicor Enerchange, Nicor’s storage marketing and optimization unit, will lead the project through the marketing stages of development. The proposed storage facility is positioned to have interconnects with Tennessee Gas’ 500 Leg, Texas Eastern Transmission, Southern Natural and possibly other interstate pipelines that serve the growing natural gas markets in the Northeast, Southeast and Ohio Valley regions of the United States.

Noting that the project is scalable to market conditions, the companies said Caledonia Storage would initially deliver 300 MMcf/d with an injection capability of about 150 MMcf/d.

“We are excited about the opportunity to work with a strong company like Nicor to help us determine the market potential of our Caledonia Storage project,” said Jim Goetz, manager, Gas Storage Services for Caledonia Energy Partners.

Depending on project interest, commercial operations for the project are proposed to begin during summer 2005.

“Caledonia Storage has the potential to become a strong addition to the national storage base and we expect that its strategic location will create immediate interest in this facility,” said Steve Cittadine, vice president and managing director of storage and trading for Nicor Enerchange.

Interested parties can receive more information about the project by contacting Cary Carrabine at (630) 245-7828, ccarrabine@nicor.com; Mark Rueff at (630) 245-7815, mrueff@nicor.com; or Goetz at (972) 691-3332, Ext. 212, jgoetz@pacesetterenergy.com.

Caledonia Energy Partners, which was formed by two seasoned energy industry veterans, specializes in the exploration and production of natural gas and crude oil along with the development, installation and management of midstream assets.

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