TULSA, Okla.--(BUSINESS WIRE)--SemGroup® Corporation (NYSE:SEMG) today announced plans to construct a new crude oil gathering system in the Denver-Julesburg Basin (DJ Basin) in Colorado. The project will support Noble Energy, Inc.’s (NYSE: NBL) efforts to move their production away from the wellhead.
“Demand continues to increase for midstream services out of the DJ Basin,” said Pete Schwiering, vice president of SemGroup Corporation. “Strong crude prices provide attractive economics for producers in this play and we are excited to be working with Noble Energy to accommodate the increased production.”
Once operational, the new gathering system, to be called the Wattenberg Oil Trunkline, will transport oil within the DJ Basin. The project will include a 37 mile, 12 inch pipeline system with 200,000 barrels of operational storage extending north from Rose Rock Midstream’s (NYSE: RRMS) Platteville Station, the origin point of White Cliffs Pipeline. The Wattenberg Oil Trunkline will connect to Noble Energy processing facilities in the heart of their producing areas and include facilities to unload trucks.
Noble Energy, Inc. has entered into a long term agreement to use the asset. The project is expected be operational the third quarter of 2013.
Based in Tulsa, Oklahoma, SemGroup® Corporation (NYSE: SEMG) is a publicly traded midstream service company providing the energy industry the means to move products from the wellhead to the wholesale marketplace. SemGroup provides diversified services for end users and consumers of crude oil, natural gas, natural gas liquids, refined products and asphalt. Services include purchasing, selling, processing, transporting, terminalling and storing energy.
SemGroup®, is a registered trademark of SemGroup Corporation.
About Rose Rock Midstream
Rose Rock Midstream, L.P. (NYSE: RRMS) is a growth-oriented Delaware limited partnership recently formed by SemGroup® Corporation to own, operate, develop and acquire a diversified portfolio of midstream energy assets. Rose Rock Midstream provides crude oil gathering, transportation, storage and marketing services. Headquartered in Tulsa, OK, Rose Rock Midstream has operations in six different states with the majority of its assets strategically located in or connected to the Cushing, Oklahoma crude oil marketing hub.
Certain matters contained in this Press Release include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995.
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