The commodity trader has acquired the Carthage upstream and midstream assets from subsidiaries of Anadarko Petroleum in a bid to expand in foot print in East Texas.
As a result of the acquisition, the firm will have over 160,000 net acres of leasehold in the region.
CCI said that the acquisition of the assets has increased its net production in East Texas to more than 320 million cubic feet equivalent per day (Mmcf/d).
CCI Oil and Gas president Craig Jarchow said: “The Company is well-positioned to enhance the value of these acquired assets through further development of the Haynesville shale, amongst other operational activities.
“We remain focused on strategically growing and diversifying our upstream and midstream assets, and broadening our portfolio with attractive opportunities that complement our long-term business strategy.”
In 2014, Castleton Commodities acquired a gas processing facility in Kirtland, New Mexico and approximately 225 miles of gathering pipelines from a wholly owned subsidiary of Anadarko Petroleum for undisclosed amount.
With a capacity of 75 Mmcf/d, the San Juan Plant is able to process sour gas that is high in sulfur as well as recover natural gas liquids through its 20 Mmcf/d cryogenic processing unit.
Earlier this year, Anadarko Petroleum agreed to acquire the deepwater Gulf of Mexico assets of Freeport-McMoRan Oil & Gas, a unit of mining firm Freeport-McMoRan, for $2bn.
The acquisition is expected to boost Anadarko output in the region to about 155,000 barrels of oil equivalent a day.
Image: Castleton Commodities intends to expand its midstream assets in East Texas, US. Photo: courtesy of Castleton Commodities International LLC.
