Sterling Energy Resources said Monday it has finalized a natural gas pipeline connection agreement with Williams Natural Gas regarding a proposed hook-up in Northeast Kansas.

Sterling said the interstate pipeline connection, located adjacent to the Williams Natural Storage Gas Field, will enable it to begin construction of its new 14-mile pipeline extension. When finished, the new line will connect a Williams interstate sales line to the 23-mile Vanguard gas gathering system acquired by Sterling in April.

In addition to the Williams interconnection agreement, Sterling said it has also signed a preliminary agreement for the construction of the new 14-mile pipeline with Northern Pipeline Construction Co., a wholly owned subsidiary of Southwest Gas.

During the pipeline construction phase, which is scheduled to begin in November, Sterling said it will commence leasing and drilling activities for potential gas reserves in and around its 37-mile pipeline system located in the gas rich Forest City Basin. In addition, the company added that it anticipates re-completing as many as six deeper Mississippi Formation gas wells that were tested earlier this year.

Sterling Energy Resources is an integrated exploration and production company operating in Northern California, South Texas and Northeastern Kansas.

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