Denver-based Western Gas Resources, Inc. said that its Mountain Gas Resources subsidiary has entered into a purchase and sale agreement to acquire certain natural gas gathering and processing assets in the eastern Green River Basin of Wyoming from Duke Energy Field Services LP, Overland Trail Transmission LLC and Duke Energy Field Services Marketing LP for approximately $28 million before adjustments.
Included in the purchase is the Patrick Draw processing plant with 150 MMcf/d of capacity and approximately 140 miles of related gathering systems. The plant is currently processing approximately 35 MMcf/d of gas from several large producers in the area. Western Gas said the Patrick Draw facility will be integrated into Western’s existing systems in the area, which includes the Red Desert processing plant and several gathering systems acquired in early 2003.
In addition, Western Gas said it also has a drilling program under way in the area on its leasehold of approximately 30,000 net acres.
“These assets are a tremendous fit with our existing gathering, processing and leasehold assets in the Wamsutter, Red Desert and Washakie Basin areas of the eastern Green River Basin,” said Peter Dea, CEO of Western Gas. “The systems will add immediate cash flow and growth opportunities to our fully integrated operations in this emerging core area. This acquisition furthers our strategy to be a premier producer, processor and gatherer of unconventional natural gas in the Rocky Mountain region.”
Western Gas said it expects closing of the acquisitions to occur in early 2005.
The independent is involved in exploring, producing, gathering, processing, transporting and marketing natural gas. In addition to its holdings, the company also designs, constructs, owns and operates natural gas gathering, processing and treating facilities in major gas-producing basins in the Rocky Mountain, Midcontinent and West Texas regions of the United States.
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