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Atlas Pipeline Partners, L.P. To Construct New Gas Processing Plant

Posted on: Wednesday, 19 October 2005, 18:00 CDT

Atlas Pipeline Partners, L.P. (NYSE:APL) (the "Partnership") announces that it plans to construct a new 120 million cubic feet per day cryogenic gas processing plant in Beckham County, Oklahoma. The new facility, to be known as the Sweetwater gas plant (the "Sweetwater" plant), will be located west of the Partnership's Elk City gas plant, and is being built to further access natural gas production actively being developed in western Oklahoma and the Texas panhandle. The Partnership expects the Sweetwater plant to be completed in the third quarter of 2006.

Sweetwater and related gathering infrastructure are expected to cost approximately $40 million and generate cash flow of $8 million to $10 million annually.

Edward E. Cohen, Chairman and C.E.O. of the general partner of the Partnership, stated, "This expansion continues our growth in the active Mid-Continent region and further expands on our successful acquisition of Elk City, which was completed in April 2005. As we anticipated, drilling activity has continued to increase in the region, which provides the Partnership with opportunities to organically grow our system."

Robert R. Firth, C.E.O. of the Partnership's Mid-Continent region, stated, "Sweetwater will uniquely complement our Elk City system and will allow us to expand our gathering, compression, processing, treating, and merchant services across a broad geographic area."

Atlas Pipeline Partners, L.P. is active in the gas gathering and processing segment of the mid-stream natural gas industry. In the Mid-Continent region of Oklahoma and northern Texas, APL owns and operates approximately 2,200 miles of gas gathering pipeline. APL transports approximately 320 million cubic feet of gas per day from more than 880 receipt points or wells to its gas processing and treating facilities in Velma, Elk City and Prentiss, Oklahoma where natural gas liquids (NGL) and impurities are removed. APL then sells the resulting residue gas and NGL and remits a portion of those proceeds to the producer. In Appalachia, it owns and operates more than 1,440 miles of natural gas gathering pipelines in western Pennsylvania, western New York and eastern Ohio to which more than 4,850 wells are currently connected. APL gathers approximately 58 million cubic feet ("mmcf") of gas per day from these wells. In the Mid-Continent and in Appalachia the fees paid to APL are based on a percentage of the gross selling price of the gas or NGL, fixed fee per mcf transported or on percent of index. For more information, visit our website at www.atlaspipelinepartners.com or contact pschreiber@atlaspipelinepartners.com.

The Partnership's actual results, performance or achievements could differ materially from those expressed or implied in this release as a result of certain factors, including the price of gas in the Mid-Continent area, actual versus projected volumetric production from wells in the area to be served by the new plant, the NGL content of the natural gas processed and other factors disclosed under "Risk Factors" in our most recent 10-K.

Source: Business Wire

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