Rendezvous Gas Services LLC, formed by subsidiaries of Western Gas Resources Inc. (WGR) and Questar Market Resources plans to offer gas gathering and compression services beginning next year in the Pinedale anticline and Hoback Basin areas in southwest Wyoming under a joint venture agreement between the two companies.

Already, more than 179,000 gross acres are committed to the joint venture under existing gathering dedications, and construction on the first phase is expected to begin by the end of this year.

Under the agreement, Rendezvous, formed by WGR’s Mountain Gas Resources Inc. and Questar Gas Management Co. (QGM), will construct and operate a gas pipeline and compression facilities that will have the capacity to transport approximately 275 MMcf/d from the Hoback Basin, which includes the Pinedale anticline and Jonah Field areas.

In addition, Rendezvous will deliver gas for blending and processing services to the Granger and Blacks Fork processing plant. Mountain is 100% owner and operator of the Granger plant, while QGM is a 50% owner and the operator of the Blacks Fork plant. Rendezvous already has a significant number of commitments of gas production from existing and future gas reserves in the Pinedale anticline and other Hoback Basin areas.

Rendezvous has approved capital expenditures of approximately $15.5 million for an initial phase of pipeline and compression expansions, which is set to begin this year. A second expansion phase, to cost approximately $28 million, is now being evaluated, and construction slated for mid-2002.

“The Pinedale anticline has the potential to be one of the most prolific natural gas fields in the Rocky Mountain region with industry estimates of up to 4 Tcf of reserve potential,” said WGR CEO Lanny Outlaw. “Rendezvous strategically enhances our existing gathering and processing opportunities in the area, and gives us an opportunity to provide midstream services to new drilling activity developing in the Hoback Basin north of the Pinedale anticline.”

Outlaw said that Rendezvous’ initial expansion efforts would offer “critical gathering capacity for the equity production developed by our respective production operations” and would improve “midstream economics through consolidated operation and capital efforts.”

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