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Meritage provides boost to natural gas production in Niobrara

Natural gas producers throughout the Powder River Basin now have their very own processing plant, as Meritage Midstream Services announced yesterday, via their website, that they have successfully completed the project. Meritage Midstream is a Denver-based company that provides oil and gas producers with a full complement of midstream services.

The processing plant, titled “50 Buttes,” resides in Campbell County, Wyoming, which is located in the heart of the Niobrara shale formation in northeastern Wyoming. The 50 Buttes plant has a current processing capacity of 70 million cubic feet per day (MMcf/d). Meritage is expecting to double its processing capacity by late 2015. The plant was built to hold up to 300 MMcf/d.

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The 50 Buttes processing plant is correlated with Meritage Midstream’s Thunder Creek system, which Meritage acquired in August of 2013 from Devon Energy Corporation. Thunder Creek Gas Services was established in 1998. It includes operating natural gas gathering, treating and processing assets in Wyoming’s Powder River Basin–including more than 700 miles of high- and low-pressure gas gathering supplies, three natural has treating facilities, compression and gas processing facilities, and various NGL and condensate handling facilities.

Due to high demand, by the end of this year, Meritage will complete construction of another 100 miles of gathering pipeline and will have more than 110 wells connected to the Thunder Creek System to meet the needs of producers.

CEO of Meritage Steve Huckaby says, “The 50 Buttes plant is a strategic addition to our significant footprint of assets in the Powder River Basin, one of the country’s most exciting emerging shale plays. It is always our goal to stay ahead of our producer customers so that gathering, processing and transportation infrastructure is in place when and where they need it. The Powder River Basin is home to several stacked oil and liquids-rich formations, and we have seen a significant increase in drilling activity in the area. We are fortunate to be in a great position to execute an aggressive expansion plan to meet the increased midstream needs of our customers.”

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