Enogex, Pablo Enter Into Joint Venture
OKLAHOMA CITY, Feb. 28 /PRNewswire-FirstCall/ — OGE Energy Corp. today announced its natural gas pipeline subsidiary, Enogex Inc., has entered into a new joint venture to gather and process natural gas from the Woodford Shale in Atoka and Coal Counties in southeastern Oklahoma.
Partners in the new joint venture, Atoka Midstream LLC, are Pablo Gathering, a newly formed subsidiary of Amarillo, Texas-based Pablo Energy II, LLC, and Enogex Atoka LLC, a newly formed subsidiary, wholly owned by Enogex.
“This partnership allows both companies to grow their businesses in the promising Woodford Shale, an area that currently lacks gas-gathering and processing infrastructure,” said Danny Harris, president and chief operating officer of Enogex. “We are excited about this unique business model and working with Pablo to maximize the respective strengths each company brings to the table. It is a model we expect to apply to future business opportunities.”
Construction is underway, and the initial start up date to move gas is planned for April. Enogex Atoka will be the managing member and operator of the gathering and processing facilities. Plans for increasing the processing capacity are already underway.
“This joint venture with Enogex affords us the opportunity to share in both the risks and rewards of the gathering and processing associated with our exploration and production efforts in the Woodford Shale,” said Jerry Steed, vice president and chief operating officer of Pablo Energy II. “We also are excited to be associated with a quality operator such as Enogex.”
The joint venture initially plans to build infrastructure to gather and a hub to process all natural gas from Pablo’s operating wells in the area. An estimated 20 wells will be online and approximately 18 miles of new pipe will be operational by July 2007.
The Enogex companies are engaged in natural gas gathering, processing, transportation, storage and marketing. Enogex operates a natural gas pipeline system with approximately 8,300 miles of pipe, six processing plants, and 23 billion cubic feet of gas storage capacity, principally in Oklahoma. OGE Energy is the parent of Enogex Inc. and also the parent of Oklahoma Gas and Electric Company, a regulated electric utility with approximately 750,000 customers in a service area spanning 30,000 square miles in Oklahoma and western Arkansas.
Pablo Energy II, LLC is an exploration and production company headquartered in Amarillo, TX. They are wholly owned by Cactus Feeders, the world’s second largest cattle feeding operation.
OGE Energy Corp.
CONTACT: Brian Alford, +1-405-553-3187, or Financial, Todd Tidwell,+1-405-553-3966, both of OGE Energy Corp.; or Jerry Steed of Pablo Energy II,LLC, +1-806-371-4762
Web site: http://www.oge.com/