American Midstream Announces Letter of intent for East Texas/Eaglebine system

http://ir.americanmidstream.com/staging/phoenix.zhtml?c=245475&...

"

Under the terms of the letter of intent, American Midstream will construct a midstream system to gather, treat, compress and process natural gas from wells targeting multiple liquids-rich producing formations, including the Eaglebine Formation.  The midstream system would include up to 60 million cubic feet per day of gathering and processing capacity to support the customer's production as well as other third-party development in the area. American Midstream expects to complete construction on the initial phase of the midstream infrastructure and begin operations in early 2013.

The Eaglebine, Woodbine, Georgetown, Buda, and Glen Rose formations are part of an emerging oil and liquids-rich resource play that extends across several counties in East Texas.  American Midstream's producer customer holds a substantial lease position in this area and is in the process of accelerating the drilling and production of these formations.  "

No word on the customer, but my money is on Halcon, with side bets on ZaZa.  outside shot of Trivium and Western Chief.  Dark horse of Devon.  

Capacity planned suggests a 30-60 well program to start.  

Tags: buda, dexter, eagle, eaglebine, ford, gathering, georgetown, woodbine

Views: 618

Replies to This Discussion

Permalink Reply by Dry Hole on August 13, 2012 at 15:53

  My My things are clicking up another notch ------- My money is on EOG/Devon  dbob ---------What county are we betting on ?  

Permalink Reply by dbob on August 13, 2012 at 16:00

I favor Madison and/or Leon.  Less likelihood to start in Houston County (IMHO guess).  interesting that their partner apparently wants to keep quiet about it.  That probably rules out Crimson (which looks for press). Devon/EOG might be a good fit.  

Permalink Reply by Dry Hole on August 13, 2012 at 16:10

I'll second on Madison

Permalink Reply by Dry Hole on August 13, 2012 at 16:25

I guess these folks will have the power of eminent domain from the State most likely and be able to condemn what that want for ROWs ?

Permalink Reply by dbob on August 13, 2012 at 16:53

It sounds like they will be structured as a common carrier, and could use eminent domain.  In the long run, its most often cheaper to stay "on lease" and avoid that, if at all possible.  

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