Meritage Midstream Services to Extend Eagle Ford Escondido Gathering System in Southwest Texas
Meritage Midstream Services
Houston, Texas — Meritage Midstream Services announced today that it has entered into an agreement with Swift Energy Company (NYSE:SFY) to provide natural gas gathering and treating services in the Eagle Ford shale region of South Texas. The twenty-five mile pipeline project includes two lateral extensions to Meritage Midstream's Eagle Ford Escondido Gathering System in Webb County, Texas: a 14.5 mile, 12-inch pipeline to the northwest into Swift's Fasken operating area and a 10.5 mile, 16-inch extension to the southeast to increase takeaway capacity. Meritage will expand treating capacity at its South Calahan facility as volumes on the gathering system increase.
Meritage Midstream designed the gathering system to provide producers with access to multiple markets. "We built the Eagle Ford Escondido Gathering System with producers like Swift in mind," said Steve Huckaby, president and CEO of Meritage Midstream. "Producers need the ability to get their gas to market quickly and efficiently. Our objective is to maximize the value of their gas and ensure that producers have access to the transmission capacity they need. We are pleased to be working with Swift Energy. They are one of the most experienced and respected producers in South Texas."
"We appreciate the market expertise and approach that Meritage Midstream brings to our initiatives in the Eagle Ford shale," said Terry Swift, CEO of Swift Energy. "We look forward to continuing to work with Meritage as we increase drilling and production activities in the Eagle Ford shale. This agreement and others reduce Swift Energy's exposure to the continuing tightness of gathering outlets facing operators in South Texas. We expect an increase in operating activity in 2011 and have taken numerous steps to ensure that we can drill, complete and produce our wells without interruption due to third party service constraints. Contracting with Meritage Midstream for gas gathering and treating services is one of those steps."
About Meritage Midstream Services
Headquartered in Golden, Colorado, Meritage Midstream provides oil and gas producers with a full complement of midstream services. Capabilities include the gathering, treating and handling of natural gas, crude oil and condensate. The company differentiates itself with a focus on excellence in customer service, integrated all-in solutions, and the ability to respond quickly to rapidly developing resource plays. The Meritage management team has a combined 140 years experience in gathering and processing. Meritage is backed by equity commitments from EnCap Flatrock Midstream and TPH Partners. Visit MeritageMidstream.com for more information.
About Swift Energy
Swift Energy Company, founded in 1979 and headquartered in Houston, engages in developing, exploring, acquiring and operating oil and gas properties, with a focus on oil and natural gas reserves onshore in Louisiana and Texas and in the inland waters of Louisiana.