Construction will begin in May, system expected to be placed into service in Q4 2016
EVX Midstream Partners, LLC says it has entered into a definitive agreement to build a produced water gathering system in the Eagle Ford oil window.
The EVX South Texas gathering system and surrounding facilities will be underpinned by a fee-based, 15-year agreement that includes a 72,000 acre dedication in La Salle, Frio, and Atascosa Counties, Texas.
“EVX South Texas facilities will create significant savings for our customers and are configurable to efficiently handle local producers’ future needs,” said EVX CEO Herb Chambers IV. Other members of the management team include COO Charlie Flynn and CFO Brian Kellar, with over 50 years of collective experience originating transactions and projects, structuring and developing midstream assets, and operating assets post-acquisition or project completion.
“Additionally, the EVX South Texas assets position EVX to provide crude oil gathering and blending and natural gas gathering, processing, and treating services within the area.”
Construction of the system will begin in May and is expected to be placed into service in Q4 2016.
EVX is currently evaluating multiple expansion opportunities for the water system, as well as potential crude oil and natural gas projects, to provide midstream solutions and cost savings to area producers.
“We are pleased to support EVX in their development efforts in the Eagle Ford. EVX’s system crosses several counties in an attractive area of the Eagle Ford and is well positioned to provide multi-commodity services to area producers,” said Matt Morrow, COO and managing partner of Five Point Capital Partners.
“EVX’s Eagle Ford development plans are aligned with our focus on deploying capital through fee-based, long-term business arrangements with credit-worthy and growth-oriented parties.”
EVX Midstream Partners LLC is a midstream development company focused on acquiring, developing and operating crude oil, natural gas, and produced water gathering, processing, treating and transportation assets in the Eagle Ford, Permian Basin, and Mid-Continent.