cpno' new processing agreement and pipeline expansion from eagleford along with its jv with KM should greatly enlarge the number of shippers who could use the new inergy header system to tres palacios
Copano to Extend its DK Pipeline to Deliver Gas to its Houston Central Complex Company to Review Eagle Ford Shale Strategy on Fourth Quarter 2010 Earnings CallHOUSTON, Feb. 9, 2011 /PRNewswire via COMTEX/ --
Copano Energy, L.L.C. (Nasdaq: CPNO) today announced several recent developments related to its Texas operating segment.
Eagle Ford Shale Copano DK Pipeline >> View Detail Map
New Agreements with Pioneer, Petrohawk and other Eagle Ford Producers
Copano has entered into new, long-term agreements with several Eagle Ford Shale producers, including, among others, Abraxas Petroleum Corporation (Nasdaq: AXAS), Paloma Resources, Petrohawk Energy Corporation (NYSE: HK), Pioneer Natural Resources (NYSE: PXD), Reliance Eagleford Upstream Holding LP, Newpek, LLC and Riley Exploration. Copano has also expanded its recently announced contract with GeoSouthern Resources to include a larger acreage dedication. Under the terms of these agreements, which are primarily fee-based, Copano will provide gathering, compression, processing and fractionation services for these producers in portions of DeWitt, Karnes and Live Oak Counties, Texas. Copano has secured firm producer volume commitments for aggregate production of up to 120,000 MMBtu per day and additional commitments for production from approximately 135,000 gross acres in the Eagle Ford Shale as a result of the new agreements.
Extension of DK Pipeline
Copano also announced today that it will extend its recently completed 24-inch DK Pipeline in DeWitt and Karnes Counties, Texas by adding 58 miles of 24-inch pipeline through Lavaca County to directly connect the DK Pipeline system into its Houston Central Complex. The pipeline extension will increase the capacity of the DK Pipeline system from 225,000 MMBtu per day to 350,000 MMBtu per day and is expected to begin service in the fourth quarter of 2011. The DK Pipeline expansion project is expected to cost approximately $100 million.