By OGJ editors
HOUSTON, Jan. 11 – Harvest Natural Resources Inc., Houston, and its partner in the Antelope project in Utah’s Uinta basin signed a contract on Dec. 21, 2010, under which El Paso Midstream Group Inc. will provide the capital to build and operate a 25-mile, low-pressure gas gathering pipeline.
The gathering system will provide capacity for current and future production from Harvest’s Lower Green River-Upper Wasatch development project. Harvest will provide capital to build flowlines to connect the produced gas from Harvest wells into the EPMG header system.
As part of the contract arrangement, Harvest and its partner dedicated 75% of their Antelope leasehold to the El Paso contract for 10 years, with a Harvest option to extend the dedication for up to an additional 9 years without any change in contract terms. The area dedication is limited stratigraphically to the top of the Mesaverde formation and excludes Mesaverde deep gas.
Harvest is operator with 60% interest in the Antelope acreage, which lies in Duchesne and Uintah counties between Altamont-Bluebell and Monument Butte oil and gas fields.