Black Bear Midstream, a portfolio company of funds managed by Oaktree Capital Management, has entered into a seven-year gas-gathering and processing agreement with a Cotton Valley producer in Desoto and Caddo Parishes, La.
The gas-gathering and processing company plans to build 20 miles of 16-inch, rich gas-gathering pipe to the west of its DeSoto Parish cryogenic processing plant to support both this contract and other producers on both sides of the Louisiana and Texas border.
“We continue to execute on our strategy to provide both lean and rich gas gathering services in support of our customers drilling both Haynesville and Cotton Valley formations in North Louisiana,” said Rich DiMichele, Black Bear’s president and CEO. “The relationship we’ve built with this and other producers keeps us excited about the area and confirms our belief that we can continue attracting production to Black Bear’s competitive, high-optionality services.”
Black Bear provides midstream solutions for producers in Louisiana and east Texas, drilling the Cotton Valley and Haynesville formations. The company has a high-pressure gathering system providing dry and rich gas gathering with several interstate natural gas connections along with a 40-mile NGL pipeline, connecting its 140 mmscf/d cryogenic gas processing plant to NGL markets in Mt. Belvieu, Texas.
