Laredo’s acreage is located in Mitchell County, Texas and is expected to produce natural gas and crude oil.
Under the agreement, Medallion will build about 16km of gathering pipeline to connect the company’s initial wells in acreage, and build up to 60 million cubic feet per day of gas processing capacity, as first phase of the construction.
Medallion Midstream CEO Randy Lentz said the company is supporting Laredo’s oil and gas rich acreage in the Midland Basin.
"The construction of this midstream system is the first step of our Midland Basin development plan which will provide full integrated services for our producer customers," Lentz added.
Medallion is planning to expand the system across the area and provide transportation and production services at low costs; help its customers access downstream markets and increase their profits.
