Eagle Rock Energy Partners, L.P. Announces Expansion of Its ETML Pipeline System in East Texas

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Eagle Rock Energy Partners, L.P. Announces Expansion of Its ETML Pipeline System in East Texas



























HOUSTON, Apr 21, 2010 (GlobeNewswire via COMTEX) --
Eagle Rock Energy Partners, L.P.
/quotes/comstock/15*!eroc/quotes/nls/eroc
(EROC
7.17,
+0.04,
+0.56%)

(the "Partnership") today announced plans to begin construction on a
nine-mile expansion of its ETML gas gathering system in East Texas to
provide multi-market capability for producers in the growing
Haynesville and Middle Bossier shale plays in Nacogdoches and San
Augustine Counties.

The expansion includes the construction of a nine-mile, 20-inch
diameter pipeline and associated treating facilities in Nacogdoches
County, Texas with an initial pipeline capacity of 200 MMcf/d, and the
expansion of existing ETML pipeline interconnects into NGPL, TETCO and
Gulf South interstate pipelines and the HPL intrastate pipeline. The
project, with an estimated total cost of $11.9 million, will expand the
Partnership's interconnect delivery capabilities through its ETML
pipeline by 300 MMcf/d and will allow the tie-in of its existing BGS
gathering system. The Partnership has purchased the required 20-inch
pipe, acquired 80% of the necessary rights-of-way and expects the
project to be completed and operational by early third quarter of 2010.
Based on continued drilling activity and success in the area, the
Partnership also is evaluating subsequent expansion phases which could
result in a total of over 50 miles of primarily 20-inch diameter pipe
extending east / west into Nacogdoches, Angelina, San Augustine and
Sabine Counties, Texas, at a total estimated cost of approximately $49
million.

Joseph A. Mills, Chairman and Chief Executive Officer, said, "Our East
Texas expansion project will bring much needed infrastructure, takeaway
and delivery capabilities to an area where we expect to see high levels
of drilling activity as the Haynesville and Middle Bossier shale plays
continue to move west into East Texas. Given our current footprint and
existing relationships with producers active in the region, this
gathering pipeline constitutes a natural extension into a prolific,
high-growth area of the East Texas basin."

Mills added, "We expect horizontal drilling activity in these East
Texas counties to significantly increase. Producers have already
achieved impressive Haynesville and Middle Bossier well results.
Certain operators in the area have reported initial production rates
between 10 and 20 MMcf/d and indicated that ultimate recoveries may be
in the range of 7 to 10 Bcf per well. Our Partnership is an established
midstream operator in East Texas, and with this expansion of our
existing infrastructure we will be ready to gather and treat our
producers' growing shale volumes and deliver them into highly
attractive markets."

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Replies to This Discussion

Wow! Two pipeline announcements in the same day. I guess someone intends to drill in Sabine after all. It's begun to feel like we are the "step-child" of the play, LOL!
This is something to crow about!

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