The new midstream company will be led by a seasoned management team that is highly experienced in the development of pipelines, gathering systems and storage assets in the oil and gas industry, the release said.
The companies are currently building out crude storage and distribution infrastructure near LBC's Seabrook Logistics terminal in Seabrook, Texas, Reuters said. Project will not be formally announced without customer commitments.
In exchange for funding Alta Mesa’s drilling and completion costs, Bayou City will receive a portion of working interest in each joint well. At various IRR thresholds, interest will revert to Alta Mesa.
Having received shareholder approval for American Energy Partners’s US$130 million farm‐out in Australia, the Oklahoma City-based company's proportional bid for 13.62% of each Armour share priced at 25 cents will now proceed.