Lucid Energy Group Begins Construction of New 200 MMcf/day Cryogenic Processing Plant in the Permian Basin
Lucid Energy Group
DALLAS – May 19, 2014 – Lucid Energy Group, LLC (“Lucid”) announced today that the company has purchased a new cryogenic processing plant that will be located 10 miles southeast of the town of Big Lake in Reagan County, Texas. This strategic location is in the heart of the Permian’s Midland Basin in West Texas. Manufactured by UOP Russell, the Big Lake Plant has a natural gas processing capacity of 200 million cubic feet per day (MMcf/d) and will bring Lucid’s total processing capacity in the Midland Basin to 320 MMcf/day. The Big Lake Plant will connect to Lucid’s 450-mile pipeline system and support natural gas production from the Wolfcamp Shale in Irion, Reagan and Crockett counties. Construction is underway and the plant is expected to be in service in the first quarter of 2015.
Big Lake will be the third natural gas processing plant that Lucid has constructed since the company started operating in the Permian Basin less than two years ago. The facility will be located near the center of volume growth on Lucid’s rapidly expanding gas gathering system and in close proximity to multiple residue gas and natural gas liquids markets. The Big Lake Plant will connect to Lucid’s existing high-pressure gas header system, which reaches across five counties in the Midland Basin.
“With the ongoing improvements in drilling and completion techniques and an increase in rig activity, production growth from Lucid’s customers continues to be robust,” said Jay Langham, Lucid’s managing director and chief operating officer. “I could not be more pleased with the performance of our operations team as we continue to stay in front of the needs of our customers and their development programs.”
About Lucid Energy Group, LLC
Dallas-based Lucid Energy Group is a midstream services company operating gas gathering, gas processing and oil gathering assets in the Midland Basin. Lucid’s business philosophy is focused on finding creative solutions for its customers and excellence in project execution. Lucid is led by Managing Directors Michael J. Latchem, W. Kyle Bebee and Jay L. Langham and supported with capital commitments from EnCap Flatrock Midstream of San Antonio. Visit www.Lucid-Energy.com for more information.
About EnCap Flatrock Midstream
EnCap Flatrock provides value-added private equity capital to proven management teams focusing on midstream infrastructure opportunities across North America. Founded in 2008 by EnCap Investments L.P. and Flatrock Energy Advisors, the firm is based in San Antonio and led by Managing Partners William D. Waldrip, William R. Lemmons Jr. and Dennis F. Jaggi. With more than 100 years of midstream experience, the principals at EnCap Flatrock manage a dedicated professional staff and midstream-focused investment commitments of nearly $6 billion from a broad group of prestigious institutional investors. EnCap Flatrock is currently investing out of EnCap Flatrock Midstream Fund III, a $3 billion fund. Visit www.efmidstream.com for more information.