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SemGas Signs Agreement with Eagle Energy Company

Source: www.gulfoilandgas.com 3/1/2011, Location: North America

SemGas, L.P., a subsidiary of SemGroup Corporation, announced it has signed an agreement with Eagle Energy Company to gather and process natural gas from its dedicated acreage in Region 1 of the Anadarko Basin in Northern Oklahoma. The agreement will include the installation of a 30,000 mcf/day cryogenic plant at its Hopeton, OK facility to support Eagle’s drilling activities into the Mississippi and Hunton geological formations.

Wayne Ziegler, vice president of SemGas said, “These assets, and the ability to provide additional processing capacity, place SemGas in a strong position to support ongoing and future Mississippi Zone drilling activity." In addition SemGas will continue to support Eagle’s drilling activity from its Nash, OK facility with further expansion capabilities available as needed.

“Eagle is extremely pleased to have reached an agreement with SemGas to upgrade and increase the capacity of their gas processing facilities in Northwest Oklahoma. This will allow Eagle to continue our aggressive development drilling plan in the emerging horizontal Mississippi Oil play and maximize the revenue for both royalty and working interest owners,” said Mike O’Kelley, Chief Operations Officer for Eagle Energy. SemGas’ Hopeton and Nash facilities are located within the Mississippian Zone which is quickly emerging as a key oil resource play.

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