[Context: On February 18, Energy Spectrum-backed Rimrock Energy announced a long-term acreage dedication from Old Ironsides-backed Confluence Resources in the DJ Basin. Further details and related links are below.]
Rimrock Energy Partners Announces the Execution of a Long-Term Commercial Agreement with Confluence Resources and the Strategic Extension of its Natural Gas Gathering and Processing System
DALLAS, Feb. 18, 2019 /PRNewswire/ — Rimrock Energy Partners, LLC (“REP”) is pleased to announce it has secured a long-term acreage dedication from Confluence Resources (“Confluence”), an active oil and gas producer with an established leasehold position in the northern DJ Basin. In conjunction with this acreage dedication, REP will extend its existing natural gas gathering and processing system (the “Pierce System”) 16-miles east to provide midstream services to Confluence. This strategic extension will position REP to provide unmatched natural gas gathering and processing services to all producers in the northern DJ Basin.
“Confluence Resources is looking forward to a mutually prosperous, long-term relationship with REP as we continue to develop our holdings in the northern DJ Basin,” said Ted Brown, President and CEO of Confluence.
“The acreage dedication from Confluence Resources is a strategic bolt-on to the system that further expands its footprint and midstream services within the DJ Basin. We are excited to add another producer with best-in-class management to our Pierce System as we continue to expand our midstream infrastructure to meet the needs of our customers,” said Josh Cruzan, CEO of REP.
REP continues to make strides in the construction of its Pierce System, an 80-mile system that will provide its producer customers with low pressure gathering and up to 200 million cubic feet per day of cryogenic gas processing capacity with access to premium residue gas and natural gas liquids markets. The Pierce System is on schedule to be in service May 2019.
About Rimrock Energy Partners, LLC
REP is a strategic, growth-oriented company focused on the acquisition, development and management of midstream energy assets across multiple commodities (crude oil, natural gas, natural gas liquids). The Rimrock management team has more than 100 years of experience in midstream operations and has completed projects with a total enterprise value exceeding $1.5 billion. Rimrock is backed by an equity commitment from Energy Spectrum Capital.
About Energy Spectrum Capital
Energy Spectrum Capital is a midstream-focused private equity firm that has raised over $4.4 billion in capital commitments focused on investing in North America’s energy infrastructure. Since its inception in 1996, Energy Spectrum has sponsored over 55 portfolio companies.
About Confluence Resources
Founded in September 2016, Confluence Resources is a private oil and gas company with holdings in the Greater Wattenberg Area of the DJ Basin, Colorado. The management team is comprised of recognized leaders in the industry with proven track records of creating significant shareholder value across multiple oil and gas resource plays over more than two decades.