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Velocity begins construction of Eagle Ford liquids gathering system

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Dec. 8 -- Velocity Midstream Partners LLC has begun construction on the initial 53 miles of its oil and condensate gathering system for Rosetta Resources Inc. and other producers in the liquids-rich portion of the Eagle Ford shale. Velocity expects Phase I of the gathering system, including a truck-loading terminal near Catarina, Tex., to be in service by January 2011.

Plans and agreements supporting Phase II construction of a pipeline from Catarina to the Gardendale Hub are progressing, as Velocity focuses on oil and condensate transportation and storage for Webb, Dimmit, La Salle, and surrounding Eagle Ford counties.

Rosetta had reached total depth on seven Eagle Ford wells as of June, saying that about 80% of their value consisted of liquids. The lateral length of the seven drilled wells averaged 4,650 ft, roughly a 20% increase compared with Rosetta's two 2009 horizontal wells. Three of the seven drilled wells were fracture-stimulated during first quarter with 12-14 frac stages/well (OGJ, May 17, 2010, p. 38).

Chesapeake Energy Corp. expanded its Eagle Ford acreage and Marathon Oil took its first stake in the play, both in late November (OGJ Online, Nov. 30, 2010).

Contact Christopher E. Smith at chriss@ogjonline.com.


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