Crosstex Energy Signs Agreement with Contango to Process Gulf of Mexico Deep-Shelf Gas Production.DALLAS -- Crosstex Energy, L.P. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : XTEX) (the Partnership) today announced an agreement with Contango Contango When the futures price is above the expected future spot price. Consequently, the price will decline to the spot price before the delivery date. Notes: This is the opposite of backwardation. Operators, Inc. to process gas from Contango's Mary Rose The Mary Rose was an English Tudor carrack warship and one of the first to be able to fire a full broadside of cannons. The Mary Rose was well equipped with 78 guns (91 after an upgrade in 1536). gas field discoveries that successfully tested deep-shelf plays in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east . The gas will be transported through an interstate natural gas pipeline to Crosstex's Pelican plant near Patterson, Louisiana Patterson is a small city in St. Mary Parish, Louisiana where the Bayou Teche flows into the Lower Atchafalaya River. The population was 5,130 at the 2000 census. Geography Patterson is located at (29.692466, -91. , from Contango's production platform on Eugene Island Eugene Island is a submerged mountain 70-85 miles off the Louisiana coast in the Gulf of Mexico. The nearby oil field Eugene Island 330 is best known for its unusual depletion profile. According to the article "Sustainable Oil?" by Chris Bennett WorldNetDaily. Block 11. Beginning in late April, the Pelican plant is scheduled to process up to 100 million cubic feet of gas per day (MMcf/d) as Contango initiates production from its Mary Rose-1 and -3 wells. As Contango develops the field, the company expects production could increase to as much as 250 MMcf/d. Crosstex's Pelican plant currently is processing approximately 200 MMcf/d, and the facility has a designed capacity to process 600 MMcf/d. "Crosstex's assets in southern Louisiana provide us with a large-scale gas processing presence on the Gulf Coast. We are excited about this project and look forward to a long-term working relationship with Contango, a deep-shelf producer and new customer," said Barry E. Davis, Crosstex President and Chief Executive Officer. "Pelican is just one of several Crosstex processing plants in Louisiana straddling strad·dle v. strad·dled, strad·dling, strad·dles v.tr. 1. a. To stand or sit with a leg on each side of; bestride: straddle a horse. b. segments of interstate pipelines that gather gas produced in the Gulf of Mexico. Consequently, we are well positioned to process offshore production headed for markets in the upper Midwest The Upper Midwest is a region of the United States with no universally agreed-upon boundary, but it almost always lies within the US Census Bureau's definition of the Midwest and includes the states of Minnesota and Wisconsin, as well as at least the Upper Peninsula of Michigan. and northeastern U.S." About the Crosstex Energy Companies Crosstex Energy, L.P., a midstream natural gas company headquartered in Dallas, operates over 5,000 miles of pipeline, 12 processing plants, four fractionators and approximately 190 natural gas amine-treating plants and dew-point control plants. Crosstex currently provides services for over 3.5 billion cubic feet per day of natural gas, or approximately seven percent of marketed U.S. daily production. Crosstex Energy, Inc. (NASDAQ:XTXI) (the Corporation) owns the two percent general partner interest, a 36 percent limited partner interest, and the incentive distribution rights of Crosstex Energy, L.P. Additional information about the Crosstex companies can be found at www.crosstexenergy.com. This press release contains "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. All statements other than statements of historical facts included herein constitute forward-looking statements. Although the companies believe that the expectations reflected in the forward-looking statements are reasonable, they can give no assurance that such expectations will prove to be correct. |
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