Western Gas Processors Ltd., a 52% owned subsidiary of Western Gas Resources Inc., Denver, has closed its $36 million purchase of the Edgewood gas processing plant and related production in East Texas from Amoco Production Co.
The plant, in Van Zandt County 80 miles east of Dallas, is rated at 65 MMcfd capacity. It currently processes about 49 MMcfd of sour Jurassic Smackover gas from 24 wells with 75 bcf of dedicated reserves. The process stream includes 22 MMcfd from wells Western will operate and own a majority interest in.
In addition, Western has a contract to gather and process Dallas Production Inc.'s gas in the immediate area. This gas, scheduled for hookup in the third quarter of this year, will boost the process stream by about 10 MMcfd from 60 bcf of dedicated reserves.
With Dallas Production wells connected, the Edgewood plant's sulfur production will jump to at least 300 long tons/day from the current 200 long tons/day.
Natural gas liquids production also will increase from the current 15,000 gal/day of propane, 20,000 gal/day of butane, 7,000 gal/day of natural gasoline, and 65,000 gal/day of stabilized condensate.
The plant purchase, with a closing date of Mar. 27, is part of a capital expansion program in which Western Gas Processors has spent or committed to spend $205 million since July 1987.
Copyright 1991 Oil & Gas Journal. All Rights Reserved.
