General | Capital Markets | Private Equity Activity

Hoover Lands New Delaware Basin Midstream Commitments

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   |    Wednesday,September 04,2013

Hoover Energy Partners LP and its affiliate Hoover Energy Texas Crude LLC has executed three new substantial crude oil gathering agreements in the southern Delaware Basin.

Hoover’s existing crude oil pipeline system, Pecos Crossing, which is located in the heart of the southern Delaware Basin, currently consists of 25 miles of 12" steel mainline, 12 miles of low pressure gathering pipeline and central delivery facilities that serve a large producer-owned gathering system.

Hoover’s new commitments are long term with acreage dedications totaling 70,000 gross acres. Counterparties are two very active Independents and one Major. Initial infrastructure related to these commitments for the connection of central crude batteries totals 18 miles of gathering pipeline and a 13-mile extension of Hoover’s Pecos Crossing 12” mainline. Hoover projects that an additional 49 miles of gathering infrastructure will be required to service these new commitments over the next several years. The mainline extension represents yet another milestone for Hoover as its Pecos Crossing mainline extends south from Ward and Reeves Counties into Pecos County. The Bone Spring and Wolfcamp development continues to trend south and east across Pecos County.

Hoover President and COO, Randy Hoover said, "Drilling activity continues to accelerate and completion quality for vertical and horizontal wells is improving. The southern portion of the Delaware Basin has lower GOR’s with 7 GPM gas and 45 to 47 gravity crude which translates into excellent returns for our producers. New opportunities continue to present themselves and we expect to have several more agreements signed in the next 60 days. We continue to pursue the expansion of our crude, gas and water gathering business model and seek to provide the producing community with outstanding midstream value."