Eagle Ford crude producers eye barging options: market sources

From Platts.com North American Crude Wire, 8.29.2011:

US Eagle Ford crude oil producers are looking at barging crude to market on the Arroyo Colorado river, market sources said. They said producers are looking at possibly using a dock and terminal operated by Petro Source Partners in Rio Hondo, Texas, to ship crude down the river to the Gulf of Mexico. Petro Source, a subsidiary of High Sierra Energy, is currently also barging crude from Catoosa, Oklahoma, to the US Gulf Coast, market sources said. A spokesman for High Sierra Energy was not immediately available for comment Monday.

Read more at www.platts.com: North American Crude Wire Volume 12 / Issue 166 / August 29, 2011 

HIGH SIERRA WATER SERVICES ACQUIRES ASSETS OF MARCUM MIDSTREAM

Acquisition Advances Firm’s Strategic Focus on Oilfield Water Treatment and Recycling Services

High Sierra Water Services, LLC, a wholly-owned subsidiary of High Sierra Energy, LP, announced today that it has acquired the assets of Marcum Midstream 1995-2 Business Trust and Marcum Midstream 1995-EC Holdings, LLC (collectively “Marcum”). Marcum has most recently operated as Conquest Water Services, LLC (“Conquest”). Founded in 1993, Conquest is the largest oil and gas water disposal company in Colorado, operating exclusively within the prolific Denver-Julesberg Basin in northeast Colorado. With drilling permits on the rise in the Basin and an increasing number of oil and gas rigs drilling for oil in the Niobrara Shale, water disposal demands are escalating in Weld County, Conquest’s primary operating area. High Sierra expects to complement Conquest’s existing operations and grow the business to serve the needs of its existing and prospective producer customers.

“High Sierra Water Services partners with leading oil and gas exploration and production companies to provide effective treatment and recycling of flow-back and produced water obtained in the drilling and production process,” said James Burke, High Sierra Energy Chief Executive Officer. “Our acquisition of Conquest will enable us to serve the growing number of producers in the Niobrara Shale play as well as the entire region, and provide a reliable source of treated, recycled water for customers through our innovative, proprietary water treatment technology.” With a focus on long-term, sustainable resource protection, High Sierra Water Services’ state-of-the-art water treatment technology recycles oilfield water to surpass regulatory standards and, in some instances, discharges treated water back into local water supplies. With four patents issued and three patents-pending, the purification technology engineered by High Sierra Water Services has revolutionized water treatment in the oil industry. Terms of the acquisition were not disclosed.

About High Sierra Water Services

With a focus on providing long-term, sustainable options, High Sierra Water Services offers water treatment solutions specifically designed to meet the needs of energy industry oil and gas producers through state-of-the-art water treatment technology. High Sierra currently operates in the Pinedale Anticline region of Wyoming, northeastern Colorado, and in parts of Oklahoma and Kansas, with future expansion plans throughout the United States and Canada. For more information on High Sierra Water Services, please visit www.highsierrawater.com

About High Sierra Energy, LP

Based in Denver, High Sierra Energy, L.P., is a privately-owned, rapidly growing midstream energy company engaged in the marketing and logistics of oil and natural gas liquids and oilfield field water services. For more information on High Sierra Energy, please visit www.highsierraenergy.com.

HIGH SIERRA ENERGY SELLS ITS NATURAL GAS STORAGE SUBSIDIARY

Strategic Divestiture of Monroe Gas Storage Promotes Firm’s Focus on Core Strategies

High Sierra Energy, L.P. (“High Sierra”), a leading diversified midstream energy company, announced today that it has completed the sale of its 70% owned subsidiary, Monroe Gas Storage Company, LLC (“Monroe”), which operates a FERC-regulated 12 Bcf natural gas storage facility in northeastern Mississippi, to Cardinal Gas Storage Partners LLC. Total consideration for the transaction was approximately $148 million.

High Sierra and its minority partners acquired the depleted reservoir in 2006 and subsequently developed the Monroe facility in order to serve the expanding energy needs of Mississippi and other areas of the Southeast, Mid-Continent and Northeastern United States. In exiting the natural gas storage business, High Sierra plans to direct proceeds from the strategic divestiture to its core businesses, which include crude oil logistics, oilfield water treatment and recycling services, and natural gas liquids logistics.

“Natural gas storage services are no longer a key component of our strategic business model,” said James Burke, High Sierra Energy Chief Executive Officer. “The divestiture of Monroe Gas Storage presents an opportunity for High Sierra to focus our capital and our efforts on core areas of growth for the partnership.”

Tudor, Pickering, Holt & Co. Securities, Inc., served as financial adviser to Monroe on the transaction.

High Sierra announces the addition of Richard Gognat as Vice President & Chief Legal Officer

High Sierra Energy, L.P. is pleased to announce today that Richard Gognat has joined the company as Vice President and Chief Legal Officer. Mr. Gognat brings substantial legal and business expertise to High Sierra from positions held during his career involving corporate matters, transactions in oil and gas exploration, production, marketing, midstream and transportation. Prior to joining High Sierra, Mr. Gognat served as Senior Vice President – Land and Legal, General Counsel and Corporate Secretary for SandRidge Energy, Inc. and Assistant General Counsel for DCP Midstream, LLC. Mr. Gognat holds a JD from the University Of Tulsa School Of Law and a BS in Business from Regis University.

HIGH SIERRA ENERGY ANNOUNCES NEW $215 MILLION CREDIT FACILITY

New Financing Will Fund Growth Initiatives and Provide Additional Working Capital

High Sierra Energy, L.P., a leading diversified midstream energy company, announced today that it has completed a new $215 million committed, three-year secured credit facility.

A portion of the proceeds will be used to refinance existing debt and to acquire the remaining 40% interest in Anticline Disposal, LLC, a provider of oil field water handling services. “These new facilities provide capital to enable the partnership to grow its existing operations and fund an important acquisition of our interest in Anticline,” said James Burke, High Sierra Energy Chief Executive Officer. “This is an important step toward the successful execution of High Sierra’s growth plan.”

BNP Paribas Securities Corporation served as the sole book runner and lead arranger for the facility in the nine-bank syndication, and BNP Paribas served as the administrative agent.