Texstar Midstream Services, LP Announces Major Pipeline System Expansion For Eagle Ford Shale Play

Sept. 29, 2010 - PRLog -- TEXSTAR MIDSTREAM SERVICES, LP is rapidly expanding its 125 mile low pressure gathering system in Frio and LaSalle Counties in Texas in order to handle future expected Eagle Ford and Buda gas volumes.  Treating capacity is being increased and the sour gas capacity will be over 30 MMCFD by the end of the first quarter 2011.  In addition, over 40 miles of gathering lines are currently being planned which will also be in place by December.  TexStar will be installing over 2,000 hp in additional compression to the current 1,400 hp.  TexStar is routing a gas export line to the Three Rivers area.  This will access multiple pipelines with gas processing capabilities and new gas markets.  This pipeline will also provide access for producers in Atascosa and McMullen Counties.

TexStar Midstream Services, LP is planning and acquiring ROW for a major Oil line extension from its dedicated acreage to the Three Rivers area.  This expansion will allow for direct connects to end user markets as well as shipping from the coast and into lines to the Houston area.  The oil gathering system will allow for not only lower gravity sour Eagle Ford crude, but also high gravity Eagle Ford condensate.  TexStar plans on having this line in service in the second quarter of 2011.

The expansion of the TexStar Midstream Services, LP pipeline system comes as news media experts report the South Texas Eagle Ford has the potential to be one of the largest crude-oil discoveries in the United States in the last 40 years.  While many shale gas plays suffer under oversupply of shale gas and resulting low natural gas prices, the Eagle Ford shale play has exceeded expectations due to growing crude oil and associated liquids-rich natural gas production.

Investment bankers in Texas are calling the Eagle Ford the “red-hot centers” of drilling for oil and other petroleum liquids.

TexStar’s management has decades of experience operating midstream assets in South Texas and has owned and operated over 1,500 miles of pipeline and two large gas processing plants.  TexStar has a strong track record of growth, having previously expanded a pipeline system from 40 miles to 1,500 miles in 14 months, increasing throughput from 15,000 Mcf/d to 160,000 Mcf/d.  TexStar previously sold a portion of its assets valued at approximately $350MM to Regency in 2006 and is currently in the process of re-building a strong midstream presence in S. Texas.

TexStar Midstream Services, LP co-CEO Phil Mezey is available for interviews.

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About TexStar Midstream Services, LP: TexStar’s management has decades of experience operating midstream assets in South Texas and has owned and operated over 1,500 miles of pipeline and two large gas processing plants. TexStar has a strong track record of growth, having previously expanded a pipeline system from 40 miles to 1,500 miles in 14 months, increasing throughput from 15,000 Mcf/d to 160,000 Mcf/d. TexStar previously sold a portion of its assets valued at approximately $350MM to Regency in 2006 and is currently in the process of building a strong midstream presence in S. Texas.