Midstream provider Lucid Energy Group (“Lucid”) announced today the
company has purchased a second cryogenic processing plant for its South
Carlsbad Gathering and Processing System (“South Carlsbad System”) in
the Delaware Basin. Known as Roadrunner I, the plant will be installed
in Eddy County, New Mexico. The announcement follows the company’s
August 30, 2016, acquisition of Agave Energy Company (“Agave”) and the
implementation of an aggressive plan to expand the South Carlsbad System
in Lea and Eddy counties in New Mexico. The plant has the capacity to
process 200 million cubic feet per day (MMcf/d) of rich gas and will
serve producers developing the prolific Wolfcamp, Bone Springs and
Avalon formations of the northern Delaware Basin. The location of the
Roadrunner Natural Gas Processing Complex is strategic to the company’s
existing infrastructure and customer base in the northern Delaware
Basin. The site will provide expansion capabilities accommodating future
development in support of Lucid’s producer customers. The targeted
in-service date for Roadrunner I is the first quarter of 2018.
Lucid is on schedule with the ongoing expansion of its Red Hills II
Plant in Lea County and anticipates commissioning that plant in June
2017. Following the installation of the Roadrunner I plant, Lucid’s
South Carlsbad System processing capacity will be 510 MMcf/d, a growth
of more than 750 percent since the acquisition of the Agave assets.
“The Roadrunner plant will complete the next step in Lucid’s growth plan
for the South Carlsbad System,” said Lucid Executive Vice President and
Chief Commercial Officer Scott Brown. “Connecting this state-of-the-art
cryogenic processing plant complex to the existing pipeline
infrastructure serving the Red Hills Plant Complex creates capacity and
reliability that our customers need in both Eddy and Lea counties.”
About Lucid Energy Group, LLC
Lucid Energy Group is a diversified energy company that provides a full
suite of midstream services to producers working in the Permian Basin.
Lucid is led by President & CEO Michael J. Latchem, Executive Vice
President & COO Jay L. Langham, Executive Vice President & CCO Scott
Brown and Executive Vice President & CFO Ryan Moss. Lucid is supported
by capital commitments from EnCap
Flatrock Midstream. Operations at Lucid are focused on the Midland
Basin and the Delaware Basin (maps
here). The Lucid philosophy is grounded in finding creative
solutions for its customers, clear communications and excellence in
project execution. Visit www.Lucid-Energy.com for
more information.
About EnCap Flatrock Midstream
EnCap Flatrock Midstream provides value-added growth capital to proven
management teams focused on midstream infrastructure opportunities
across North America. The firm was formed in 2008 by a partnership
between EnCap
Investments L.P. and Flatrock Energy Advisors. Based in San Antonio
with offices in Oklahoma City and Houston, EnCap Flatrock is led by its
three Managing Partners and Founders William D. Waldrip, Dennis F. Jaggi
and William R. Lemmons, Jr; Managing Partners Gregory C. King and Dave
Kurtz; and Partner Dennis J. McCanless. The firm manages investment
commitments of nearly $6 billion from a broad group of institutional
investors. EnCap Flatrock is currently making commitments to new
management teams from EFM Fund III, a $3 billion fund. www.efmidstream.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20170131006089/en/
Copyright Business Wire 2017
Source: Business Wire
(January 31, 2017 - 12:38 PM EST)
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