October 2012, Vol. 239 No. 10

In The News

Eagle Rock Buying BP Assets In Texas Panhandle

Eagle Rock Energy Partners, L.P. signed a definitive agreement to acquire BP America Production Company’s Sunray and Hemphill processing plants and associated 2,500-mile gathering system serving the liquids-rich Texas Panhandle for $227.5 million.

Eagle Rock and BP will enter into at closing a 20-year, fixed-fee Gas Gathering and Processing Agreement under which Eagle Rock will gather and process BP’s natural gas production from the existing connected wells. BP and its joint venture partners will commit to Eagle Rock under the same Gas Gathering and Processing terms all future natural gas production from new wells drilled within an initial two-year period from closing, subject to mutually agreed extensions, and within a two-mile radius of the existing 2,500-mile gathering system.

BP Panhandle System gathering volumes in the first half of 2012 averaged 180 MMcf/d, and the Partnership expects to continue to grow the overall throughput from the Texas Panhandle area based on the drilling programs from BP and third- party producers active in the area.