December 9, 2013
November 19, 2013
Natural gas services including gathering, compressing, treating, processing, and marketing.
Areas of Operation
Our Mid-Continent assets primarily consist of the properties acquired from Crow Creek Energy on May 3, 2011 and include operated and non-operated properties in the Golden Trend Field, SCOOP play, Cana Shale play, Verden Field, Mansfield Field, and other fields in Texas, Oklahoma and Arkansas. Productive depths range from approximately 2,500 feet in the Arkoma fields of western Arkansas to greater than 18,000 feet in the Springer formation in certain western Oklahoma fields.
Our largest producing field is the Golden Trend Field in Grady, McClain and Garvin Counties, Oklahoma. The field is a large structural trap that produces from the shallow Pennsylvanian- age Deese formation to the deep Ordovician Arbuckle formation. Most of our current production is from the Bromide formation and the "Big Four" interval consisting of the Viola, Hunton, Woodford and Sycamore formations.
We have a significant ownership position in the new and expanding Cana (Woodford) Shale and Southeast Cana Shale plays in western Oklahoma, consisting of approximately 15,200 net acres in these plays extending across Canadian, Blaine, Dewey, Grady, Garvin and Stephens Counties in Oklahoma. The Cana and Southeast Cana Shale produce from horizontal wells drilled to vertical depths of 11,000 - 13,000 feet and extended with horizontal lateral lengths of approximately 5,000 feet. The horizontal laterals are fracture stimulated in multiple stages to optimize productivity from the shale reservoir.
As of December 31, 2012, we operated 286 productive wells and own a working interest in an additional 1,078 non-operated productive wells. The average working interest in these productive operated and non-operated wells is 83% and 9%, respectively. The net production averaged approximately 50.2 MMcfe/d in the fourth quarter of 2012, of which approximately 73% was produced from wells we operated. Most of the non-operated production comes from the properties within the Cana Shale play, Verden Field, and various other fields located in the Arkoma and Anadarko Basin. The majority of the interests in the Cana Shale are operated by large upstream companies with significant experience and expertise in developing shale gas reserves.
The Southern Alabama region includes the Big Escambia Creek, Flomaton and Fanny Church Fields located in Escambia County, Alabama. These fields produce from either the Smackover or Norphlet formations at depths ranging from approximately 15,000 to 16,000 feet. The Big Escambia Creek field was discovered in 1971 and encompasses approximately 11,568 gross and 7,334 net Eagle Rock operated acres. As of December 31, 2012, we operated eighteen productive wells with an average ownership of 63% working interest and 54% net revenue interest in the Big Escambia Creek field.
The Fanny Church Field is located two miles east of Big Escambia Creek. Our ownership includes approximately 1,284 gross and 949 net operated acres with two productive, operated wells having an average ownership of 85% working interest and 66% net revenue interest.
The Flomaton Field is adjacent to and partially underlies the Big Escambia Creek Field. The field encompasses approximately 1,280 gross and 1,256 net Eagle Rock operated acres and produces from the Norphlet formation at depths from approximately 15,000 to 16,000 feet. As of December 31, 2012, we operated three productive wells with an approximate average 91% working interest and 78% net revenue interest.
The Smackover and Norphlet reservoirs are sour, gas condensate reservoirs which produce fluids containing a high percentage of hydrogen sulfide and carbon dioxide. These impurities are extracted at the Eagle Rock-operated Big Escambia Creek Treating Facility or Flomaton Treating Facility, and the treated gas is further processed for the removal of natural gas liquids in the Big Escambia Creek Gas Processing Facility. The operation of the wells and the facilities are closely connected, and we are the largest owner and operator of the combined assets. In addition to selling condensate, natural gas, and NGLs, we also market elemental sulfur.
Our Permian operations are concentrated in numerous fields located mainly in Ward, Pecos, and Crane Counties, Texas. These fields are located on the Central Basin Platform which encompasses hundreds of individual fields with multiple productive intervals from the Yates through the Ellenburger formations. The Ward County fields encompass approximately 10,285 gross and 10,215 net Eagle Rock acres. We operate multiple fields consisting of stacked multi-pay horizons that produce from depths of 2,300 feet (Yates) to 9,100 feet (Pennsylvanian). The Southern Unit is located in the Running “W” Waddell field discovered in the mid-1930s and produces predominantly oil at depths from approximately 5,750 to 5,900 feet. We operate approximately 5,875 net acres in this area. As of December 31, 2012, our ownership in the Permian region wells averaged 95% net working interest and 75% net revenue interest.
The East/South Texas/Mississippi/Louisiana region includes the Aker, Birch, Edgewood, Eustace, Fruitvale, Ginger and Wesson fields in East Texas, the Jourdanton field in South Texas, and the Chicora W, High Road, and Stafford Springs fields in Mississippi.
The East Texas and Louisiana fields produce primarily from the Smackover Trend at depths from 12,000 to 12,700 feet and encompass approximately 18,991 gross and 15,872 net Eagle Rock acres. As of December 31, 2012, we operated 32 productive wells which produce gas that contains between approximately 25% to 65% of impurities (hydrogen sulfide, nitrogen, and carbon dioxide). The Edgewood field also contains two productive gas wells in the Cotton Valley formation at depths of 11,500 to 11,600 feet which produce sweet natural gas. The East Texas production, with the exception of a single well, is delivered to the third party owned Eustace Plant for separation of condensate, removal of impurities, and extraction of natural gas liquids and sulfur. The residue gas is sold by the midstream plant operator to various markets.
In South Texas, we operate wells in the Jourdanton field in Atascosa County, Texas, which was originally discovered in 1945 by Humble Oil Company. As of December 31, 2012, we operated six productive wells with 100% working interest and 88% net revenue interest. Net leasehold ownership in the field is 926 acres. Our production from the field is primarily from the Edwards carbonates (7,300 to 7,400 feet); however, production was previously established in multiple reservoirs above the Edwards interval, in the Georgetown, Austin Chalk, and Buda formations. In addition, the Eagle Ford shale is productive in the southern portion of Atascosa County, but it has not been widely tested in the immediate vicinity of our wells.
The Mississippi properties produce from the Smackover formation at depths of 16,500 feet to 17,200 feet, and our interests encompass approximately 800 gross and 790 net acres. As of December 31, 2012, we operated one productive oil well and one productive gas well.
This web page may include "forward-looking statements." All statements, other than statements of historical facts, included in this web page that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements and speak only as of the date on which such statement is made. These statements are based on certain assumptions made by the Partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership. These include, but are not limited to, risks related to volatility of commodity prices; market demand for crude oil, natural gas and natural gas liquids; the effectiveness of the Partnership's hedging activities; the Partnership's ability to retain key customers; the Partnership's ability to continue to obtain new sources of crude oil and natural gas supply; the availability of local, intrastate and interstate transportation systems and other facilities to transport crude oil, natural gas and natural gas liquids; competition in the oil and gas industry; the Partnership's ability to obtain credit and access the capital markets; general economic conditions; and the effects of government regulations and policies. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Partnership's actual results and plans could differ materially from those implied or expressed by any forward-looking statements. The Partnership assumes no obligation to update any forward-looking statement as of any future date. For a detailed list of the Partnership's risk factors, please consult the Partnership's Form 10-K, filed with the Securities and Exchange Commission ("SEC") for the year ended December 31, 2012 and the Partnership's Forms 10-Q filed with the SEC for subsequent quarters, as well as any other public filings and press releases.