Rimrock Energy Partners has secured a long-term acreage dedication from Confluence Resources, an active oil and gas producer with an established leasehold position in the northern DJ Basin.
Image: Rimrock signs long-term commercial agreement with confluence resources. Photo: Courtesy of rawpixel on Unsplash.
In conjunction with this acreage dedication, REP will extend its existing natural gas gathering and processing system (the “Pierce System”) 16-miles east to provide midstream services to Confluence. This strategic extension will position REP to provide unmatched natural gas gathering and processing services to all producers in the northern DJ Basin.
“Confluence Resources is looking forward to a mutually prosperous, long-term relationship with REP as we continue to develop our holdings in the northern DJ Basin,” said Ted Brown, President and CEO of Confluence.
“The acreage dedication from Confluence Resources is a strategic bolt-on to the system that further expands its footprint and midstream services within the DJ Basin. We are excited to add another producer with best-in-class management to our Pierce System as we continue to expand our midstream infrastructure to meet the needs of our customers,” said Josh Cruzan, CEO of REP.
REP continues to make strides in the construction of its Pierce System, an 80-mile system that will provide its producer customers with low pressure gathering and up to 200 million cubic feet per day of cryogenic gas processing capacity with access to premium residue gas and natural gas liquids markets. The Pierce System is on schedule to be in service May 2019.
Source: Company Press Release.