The expansion includes the construction of a nine-mile, 20-inch diameter pipeline and associated treating facilities in Nacogdoches county, Texas, with an initial pipeline capacity of 200mmcf/d, and the expansion of existing ETML pipeline interconnects into NGPL, TETCO and Gulf South interstate pipelines and the HPL intrastate pipeline.

The project, with an estimated total cost of $11.9m, will expand the company’s interconnect delivery capabilities through its ETML pipeline by 300mmcf/d and will allow the tie-in of its existing BGS gathering system.

The company has purchased the required 20-inch pipe, acquired 80% of the necessary rights-of-way and expects the project to be completed and operational by early third quarter of 2010.

Based on continued drilling activity and success in the area, the company is also evaluating subsequent expansion phases, which could result in a total of over 50 miles of primarily 20-inch diameter pipe extending east/west into Nacogdoches, Angelina, San Augustine and Sabine Counties, Texas, at a total estimated cost of approximately $49m.