JP Energy signs agreement to build extension of Silver Dollar Pipeline

JP Energy Partners has signed an agreement to build and operate an extension of its Silver Dollar Pipeline crude oil gathering system into the core of the Midland Basin.

The ten-year fee-based gathering agreement with Discovery Natural Resources is supported by a commitment of 53,000 acres in Reagan, Glasscock, Sterling and Irion counties.

JP Energy will also deliver crude oil trucking, marketing and associated services for Discovery.

The gathering system expansion will feature about 55 miles of pipeline, extending from southern Reagan County north into Glasscock County across several drilling areas of the Midland Basin.

The $36m project is anticipated to be completed in the second half of 2015.

JP Energy CEO Patrick Barley said: "The Midland Basin is a key area of focus for JP Energy, and we believe that our Silver Dollar Pipeline is a strategic and well-positioned crude oil gathering system.

"We expect that as Discovery and other producers continue to develop the Spraberry, Wolfberry and Wolfcamp plays of the Midland Basin, JP Energy’s locational advantages and broad range of logistical capabilities will prove valuable to both the producer community and downstream customers in the crude oil markets."

Headquartered in Irving, Texas, JP Energy owns and operates assets as well as delivers midstream infrastructure solutions, connecting producers and suppliers of hydrocarbons that include crude oil, refined products and natural gas liquids, to end markets in the US.