Gastar Exploration Ltd. said it is closing on the sale of its East Texas properties to Cubic Energy Inc., a transaction that was delayed multiple times to accommodate the financing needs of Cubic (see Shale Daily, Sept. 25). Gastar said it expects to receive $39.2 million in proceeds in addition to the $4.7 million deposit previously paid by Cubic by Oct. 2. The deal was announced in April (see Shale Daily, April 23).
Nuevo Midstream LLC has finished a major expansion of its amine treating capacity and has begun construction of the Phase III expansion of its natural gas processing system in the Delaware Basin near Orla, TX. Houston-based Nuevo is focused on serving producers in the Bone Spring and Wolfcamp formations and the Avalon Shale in Southeast New Mexico and West Texas. The amine treating plant is online at the company’s Ramsey processing site in Reeves County, TX, and has a capacity of 1,300 gallons per minute (gpm), bringing Nuevo’s total treating capacity to 1,800 gpm. Nuevo has also completed its interconnect to DCP Midstream’s Sand Hills natural gas liquids (NGL) pipeline (see Shale Daily, June 18) with NGL delivery into Mont Belvieu, TX. Based on customer demand for additional processing capacity to serve the Avalon, Bone Spring and Wolfcamp production, Nuevo has begun construction of an additional 200 MMcf/d cryogenic processing plant, known as the Ramsey III plant, which it expects to bring online in April, bringing its total cryogenic processing capacity to 310 MMcf/d. Nuevo said it plans further expansions that are expected to bring cryogenic processing capacity up to 910 MMcf/d and treating capacity to up to 3,800 gpm.
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