Crestwood Enhances Midstream Footprint In Niobrara Shale

August 2013, Vol. 240 No. 8

Crestwood Midstream Partners LP reports its subsidiary, Crestwood Niobrara LLC, will acquire a 50% interest in Jackalope Gas Gathering Service LLC from RKI Exploration & Production LLC for $108 million.

The Jackalope system in Converse County, WY provides Crestwood with an early-stage entrance into the emerging Powder River Basin Niobrara Shale play and positions Crestwood for significant future infrastructure development opportunities across the rich gas and crude oil midstream value chain.

The other 50% interest in Jackalope is owned by Access Midstream Partners LP, which was acquired in 2012 from Chesapeake Energy Corp. Access will continue to provide field operations and construction management for Jackalope. Crestwood will control commercial development.

The Jackalope system includes 100 miles of gathering pipelines and
9,400 hp of compression equipment; there are near-term plans to install a new gas processing facility and continued expansion of the gas gathering system. The existing assets and future development are supported by a 20-year gathering and processing agreement with Chesapeake and RKI.