Falcon Gas Storage Subsidiary Closes on $335 Million Bank Loan Facility.HOUSTON -- Falcon Gas Storage Company, Inc. today announced that its newly created wholly-owned subsidiary, NorTex Gas Storage Company, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , has closed on a secured $335 million bank loan package for the expansion of its Hill-Lake and Worsham-Steed gas storage facilities in North Texas. The financing consists of a $280 million construction and term loan that will be used to complete the Phase II and Phase III Noun 1. phase III - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the FDA expansions of the Hill-Lake Gas Storage Facility in Eastland County, as well as the Phase I and Phase II expansions of the Worsham-Steed Gas Storage Facility in Jack County. The latter project includes the construction of a 63-mile, 24-inch 450,000 Mcfd take-away take·a·way n. 1. A concession, as in a lower level of health benefits, made by a labor union to a company in negotiating a new contract. 2. pipeline that will traverse through the western expansion of the Barnett Shale The Barnett Shale is a geological formation of economic significance. It consists of sedimentary rocks of Mississippian age in the U.S. State of Texas. The formation is estimated to stretch from the city of Dallas to west of the city of Fort Worth and south, covering 5,000 square gas play in North Texas. The construction and term loan also will be used to finance the fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. and installation of two 60,000 Mcfd cryogenic gas processing plants designed to recover up to an aggregate total of 240,000 gallons per day of natural gas liquids (NGLs) from both gas storage reservoirs; the expansion of crude oil production operations at both facilities, including an enhanced oil recovery Enhanced Oil Recovery (EOR) is a generic term for techniques for increasing the amount of oil that can be extracted from an oil field. Using EOR, 30-60 %, or more, of the reservoir's original oil can be extracted [1] compared with 20-40% [2] (EOR EOR - exclusive or ) project at Worsham-Steed; and the recovery of crude oil produced in association with gas storage operations at both locations. The remaining $55 million in financing consists of a working capital facility that will be used to purchase, hedge and trade working gas storage inventory as well as for general corporate purposes. NorTex Gas Storage Company, LLC, a special purpose wholly-owned subsidiary of Falcon Gas Storage Company, is the borrower under the bank financing. It holds title to both the Worsham-Steed and Hill-Lake assets through various wholly-owned operating subsidiaries. Barclays Capital and WestLB AG acted as Lead Arrangers and Joint Bookrunners. WestLB also acted as exclusive financial advisor to NorTex with respect to the structuring of the financing. "This new bank financing represents the next big step for us in implementing our business strategy, following the equity investment by Arcapita in 2005," said Falcon President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. John M. Hopper. "We've been involved for over six years in gas storage development and operations activity in North Texas. The financing will allow NorTex to complete the full-phase expansions at both Hill-Lake and Worsham-Steed, as well as construction of a new 450,000 Mcfd take-away pipeline in the Barnett Shale, in order to meet the growing demand for high-deliverability, multi-cycle (HDMC HDMC Hajnowskich Dni Muzyki Cerkiewnej (Polish) HDMC Hierarchical Digital Modulation Classification ) gas storage services and gas transportation services in the rapidly expanding North Texas energy market. It also will enable NorTex to fully exploit the extraordinary economic potential of the Hill-Lake and Worsham-Steed storage reservoirs by expanding the gas processing, natural gas liquids, and crude oil production activities NorTex conducts in association with its gas storage operations in North Texas." About Falcon Gas Storage Company, Inc. Through its wholly-owned subsidiaries and affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. , Houston-based Falcon Gas Storage Company is one of the largest independently owned developers and operators of high-deliverability, multi-cycle (HDMC) natural gas storage capacity in the United States. Falcon's NorTex Gas Storage Company subsidiary owns and operates more than 27 Bcf of gas storage capacity and 750,000 Mcfd of deliverability at its Hill-Lake and Worsham-Steed gas storage facilities, as well as 450,000 Mcfd of gas transportation capacity, serving Dallas/Ft. Worth and the Waha and Carthage Market Hubs. Through its MoBay Storage Hub LLC affiliate, Falcon also is developing a 50 Bcf HDMC gas storage project in southern Alabama with 1.0 Bcfd of injection and withdrawal capacity. Falcon subsidiaries also are involved in crude oil production, including enhanced oil recovery, natural gas processing Natural gas processing plants, or fractionators, are used to purify the raw natural gas extracted from underground gas fields and brought up to the surface by gas wells. The processed natural gas, used as fuel by residential, commercial and industial consumers, is almost pure and liquids production, and gas, crude oil and NGLs trading. Visit Falcon at www.falcongasstorage.com. About Arcapita Bank B.S.C. Arcapita operates out of three offices, in Bahrain, Atlanta and London, where it employs 236 people. It has a balance sheet footing of $2.8 billion (as of September 30, 2006) and has completed 58 investments with a total transaction value of over $18 billion in its four lines of business: corporate investment, real estate investment, asset-based investment and venture capital. Visit Arcapita at www.arcapita.com. |
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