Midstream operator Frontier Gas Services LLC said Wednesday it has acquired two more natural gas gathering systems in Arkansas’ Fayetteville Shale, adding to the four it already operates in the play.

The systems, located in Faulkner and Conway counties, AR, include 20,000 hp of leased compression, two gas treating facilities and 38 miles of eight-, 10-, 12- and 16-inch diameter steel pipe with current capacity to deliver more than 100 MMcf/d into the Boardwalk Pipeline Partners LP and Ozark Gas Transmission LP pipelines (see Daily GPI, April 9, 2009; April 4, 2008).

Frontier plans to “significantly” expand the new Fayetteville Shale properties in 2011, including adding interconnects with the recently approved Fayetteville Express Pipeline (see Daily GPI, Dec. 18, 2009).

“We have been a very active gatherer in the Fayetteville and are excited about increasing our asset base in one of the most successful shale plays in the United States,” said Frontier CEO Dave Presley. “We look forward to expanding our operations as we continue to provide the level of service necessary to meet producer growth expectations in this area.”

Chesapeake Energy Marketing Inc., an affiliate of Chesapeake Energy Corp., dedicated its interest in the newly acquired systems to Frontier from a defined area adjacent to the two gathering systems where it has an “aggressive drilling plan in progress,” Frontier said.

Frontier already has four existing systems in Arkansas: Wilson Creek Gathering System, 100 MMcf/d of capacity; Prairie Creek Gathering System, 50 MMcf/d; Twin Groves Gathering System, 60 MMcf/d; and Rose Bud Gathering System, also with 60 MMcf/d.

Frontier also owns the Indian Creek Gas Processing Facility, which processes produced gas from the Granite Wash formation in the Texas Panhandle. The Indian Creek system has 36 MMcf/d of cryogen processing capacity with residue gas delivered into ANR Pipeline. Natural gas liquids are transported to Mid-America Pipeline for ultimate delivery to the Mont Belvieu facility in southeast Texas.

The Tulsa-based midstream operator is a joint venture (JV) that was formed by private equity funds Energy Spectrum Partners V LP and TPF II LP to back Frontier Energy Services LLC. Frontier Energy Services was founded by Presley in 2002, and two years later he orchestrated the sale of the Frontier assets then in place for $134 million.

Last year Tenaska Capital Management LLC (TCM) and Energy Spectrum jointly pledged “at least” $250 million to fund Frontier Gas midstream developments (see Daily GPI, Aug. 18, 2009). TCM, an affiliate of Tenaska Energy Inc. and manager of the TPF II fund, and Energy Spectrum own a majority interest in the JV.

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