EagleClaw’s total processing capacity increased 320 MMcf/d, with additional 75,000 acres for drilling in the Permian Basin
MIDLAND, Texas – EagleClaw Midstream Ventures, LLC announced the company entered into an agreement to acquire PennTex Permian, LLC a wholly owned subsidiary of PennTex Midstream Partners, LLC, in a press release.
Primarily located in Reeves County, Texas, PennTex Permian’s assets include a cryogenic processing plant with the capacity to process 60 MMcf/d, approximately 90 miles of gathering pipeline and approximately 35 miles of condensate pipeline.
PennTex Permian’s assets are supported by long-term dedications of more than 75,000 acres from the region’s leading producers.
“Given the Delaware Basin’s stacked pay potential, we believe Reeves County may contain the largest inventory of profitable wells in the US. We’re seeing great production and drilling results paired with economics that make sense, even through the downturn,” said EagleClaw CEO Bob Milam.
EagleClaw expects to complete the acquisition of PennTex Permian in the third quarter.
EagleClaw will connect the PennTex system to its East Toyah System, bringing EagleClaw’s current processing capacity to 120 MMcf/d and total gathering pipeline to more than 200 miles served by nine field compressor stations with a total of 20,000 horsepower of low- and high-pressure compression.
The combined systems serve producers in the Permian’s Delaware Basin targeting stacked pay zones including the Upper and Middle Wolfcamp, Bone Spring and the Avalon Shale formations (map here).
Due to the performance of recent wells drilled in the area, EagleClaw also announced that it has broken ground on the installation of an additional cryogenic processing plant at its East Toyah Processing Complex in Reeves County.
These wells include the last two wells drilled by Silverback Exploration, LLC, each with initial production rates of approximately 7 MMcf/d of natural gas and 820 barrels per day of crude oil, according to the press release.
“We’re in the customer service business, so we’ve been working very hard to make sure that we have the capacity that our producers need to move hydrocarbons to the best markets. This acquisition and our new state-of-the-art plant bring top-tier assets into our portfolio. These assets together with long-term dedications of approximately 200,000 acres position EagleClaw as the largest privately held midstream player in the Southern Delaware Basin,” said Milam.
The Toyah II plant will have the capacity to process 200 MMcf/d.
EagleClaw expects to bring the Toyah II plant online later this year, bringing EagleClaw’s total processing capacity to 320 MMcf/d.
An 18-mile NGL line connects the East Toyah Processing Complex to Lone Star’s West Texas Gateway Pipeline, which transports NGLs to the market center at Mont Belvieu, Texas.