News

GOLDEN, Colo. — Meritage Midstream Services announced today that the company has entered into agreement with Laredo Energy to build a 48-mile high pressure gas gathering system in Webb County, Texas, to gather gas produced primarily from the Eagle Ford shale formation . The 16-inch trunkline is designed to provide Eagle Ford producers with access to multiple markets. Meritage Midstream is currently negotiating with several companies to provide pipeline interconnects including systems owned by DCP Midstream, Energy Transfer/Houston Pipeline Company, Kinder Morgan, and Webb Duval. Meritage plans to expand the gathering system through the addition of numerous lateral pipelines to service nearby development and is contemplating accessing additional markets to further enhance optionality.

“We’re pleased to be working with several experienced and well respected producers in this area of the Eagle Ford shale and Laredo is one of the best.” said Meritage Midstream’s President, Steven B. Huckaby. “Producers like Laredo, need flexibility in their downstream markets to maximize the value of their gas and maintain access to capacity. We think the footprint we are building will benefit all Eagle Ford producers by getting their gas to these downstream markets, quickly and efficiently.” he added.

Glenn Hart, Chairman of Laredo Energy, said of Meritage, “We value our relationship with the team at Meritage and appreciate their expertise, attitude and ability to provide quality gathering services in support of our Eagle Ford development program.” Laredo holds over 120,000 acres in Webb County, Texas. The Eagle Ford shale covers more than 10 million acres and stretches from the Mexican border along the Gulf Coast toward Louisiana.

Meritage Midstream also announced today it has opened a regional office in Houston, Texas and has named J. Stacy Horn as Vice President of the company’s Southern Region. Horn will oversee Meritage Midstream’s activities in Texas, Louisiana and Oklahoma, including the Eagle Ford gathering system. “I’m thrilled to be part of the leadership team at Meritage Midstream, said Horn. “Meritage is all about making things happen for producers by providing them with options in rapidly developing plays. It’s exciting to be part of a team that’s so driven to find creative, viable solutions for its customers.”

About Meritage Midstream Services
Headquartered in Golden, Colorado, Meritage Midstream Services provides oil and gas producers with a full complement of midstream services. Capabilities include the gathering, treating and handling of natural gas, crude oil, water, and condensate. The company differentiates itself with a focus on excellence in customer service, integrated all-in solutions, and the ability to respond quickly to rapidly developing resource plays. The Meritage management team has a combined 100 years experience in gathering and processing. In 2009, the company announced equity commitments from EnCap Energy Infrastructure Fund and TPH Partners.

About Laredo Energy
Formed in 2001, Laredo Energy is a privately held company engaged in the acquisition and development of natural gas reserves in South Texas. The company has drilled over 300 wells in Webb and Zapata Counties and continues to drill 20 to 30 wells per year. Laredo has offices in Houston and Laredo, Texas.