AMGAS Launches Full Service H2S Treatment Operations in Texas - Eagle Ford - Press Release

AMGAS H2S Treatment Services

AMGAS Service Inc (AMGAS), a full service H2S and noxious emissions treatment company, has commenced operations in Texas in response to increases in the levels of sour shale production. AMGAS’ innovations and expertise will help ensure producers are better able to safely haul and transport crude laden with H2S by truck and rail.

AMGAS will officially launch their services at the Developing Unconventionals DUG Eagle Ford Conference in San Antonio, Texas September 17-19, 2013 and representatives from the company will be on hand at booth 2085.

Texas has over 12,000 H2S gas wells and over 190,000 oil wells with H2S creating additional challenges during production, such as increased risks to workers safety and its impact on the environment. As an industry leader, AMGAS has the equipment and expertise to remove and treat H2S while crude is in motion. Their service helps control costs and positively impacts worker safety and the environment.

“H2S is dangerous and must be handled and treated properly throughout all stages of drilling and production,” said Sheldon McKee director Business & Product Development at AMGAS. “Our aim is to proactively treat all H2S instances in the field and during transport in order to give our client the very best solutions on the market.”

At the intersection of service, chemical and equipment, AMGAS offers full service H2S treatment with dependable innovations. AMGAS offers truck loading, fluid treatment and tank venting, which are all serviced by trained professionals.

 “What sets us apart is that we remove H2S from the well all the way to market (transport) and that allows us to be multidimensional in our approach,” said McKee. “We aim to lock down emissions at the lease and remove and treat H2S from the well to the road. We want to push the industry forward and continue to work to raise the standards of H2S treatment and removal.”

About AMGAS

AMGAS is a corporation with offices across Western Canada, the US and in the Middle East and has been a leader in H2S treatment since the late 1980s. Safely handling H2S requires trained experts using dependable and innovative equipment, chemicals and processes. AMGAS developed specialized services fitting the specific needs of their different locations, operating at the intersection of chemicals, equipment and service. They take pride in working closely with their clients to ensure safety on site and provide expert assistance for all H2S treatments. For more information, please go to www.am-gas.com.

Company Contacts:

AMGAS Services Inc. Sheldon McKee Director of International Business Development [email protected] 403.507.5499

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Magnum Hunter's Eureka Hunter Subsidiary Deals For TransTex Gas Services - $58.5 million

Magnum Hunter Resources announced its subsidiary Eureka Hunter Holdings, LLC has entered an asset purchase agreement to acquire TransTex Gas Services. Eureka Hunter will pay $58.5 million, with both cash and equity, for TransTex Gas.  TransTex was started in 2006 and has quickly grow to the largest privately held contract gas treating company.  The company offers a broad range of midstream services and has over 50 amine plants that remove and treat CO2 and H2S from natural gas, as well as a fleet of dew point control plants.  TransTex's fabrication yard is conveniently located in Halletsville, TX, where the company can easily serve the Eagle Ford Shale. The company specializes in plants sized less than 60 GPM.

Magnum Hunter currently runs 4 rigs in the play and has plans to eventually spin off its midstream business into a MLP.

"The addition of the TransTex's group of assets and management team to Eureka Hunter is a another step in our overall business plan which makes for a very comprehensive and well rounded midstream services company. Eureka Hunter will now have immediate access and the ability to offer producers skid mounted wellhead treating and field processing plants ideally suited for specific customer needs. In addition, TransTex will broaden its footprint as Eureka Hunter continues to expand its gathering system in the Marcellus Shale of West Virginia and into the Utica Shale in eastern Ohio. We also believe the management team at TransTex will be able to identify additional business opportunities in the gathering and processing business for Eureka Hunter. With the acquisition of TransTex, we are significantly closer to the MLP objective we are ultimately seeking."

Kinder Morgan Acquires SouthTex Treaters an Amine Plant Manufacturer

Kinder Morgan is acquiring SouthTex Treaters in a $155 million transaction. The acquisition adds to Kinder Morgan's ability to deliver needed processing in the Eagle Ford Shale. The company will now offer lease arrangements or can simply sell amine plants. Amine plants are being used more widely across the Eagle Ford due to levels of H2S (Sour Gas) in the natural gas stream. The hydrogen sulfide has to be separated from natural gas production before pipeline operators will transport the gas. One of the quickest way to get cut off from the gathering system is to go above acceptable levels of H2S (4 ppm). 

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced it has signed a definitive purchase and sale agreement to acquire SouthTex Treaters, a leading manufacturer, designer and fabricator of natural gas treating plants that remove CO2 and H2S, for approximately $155 million. The manufactured amine plants range in size from 5 to 1,200 gallons per minute of treating capacity. Kinder Morgan Treating, a subsidiary of KMP, is the industry leader and largest provider of contract operated treating and hydrocarbon dew point conditioning plants. The acquisition will allow Kinder Morgan Treating to build amine plants and offer customers the option to own or lease the equipment.

"This acquisition will enable us to provide large amine plants for centralized treating facilities which are often needed in the rapidly developing shale plays," said Bill Stokes, vice president of Kinder Morgan Treating. "We will also be able to replenish our already large inventory of amine plants and offer our customers even more flexibility for their treating needs." Upon closing, which is likely to occur within the fourth quarter this year, the transaction is expected to be immediately accretive to cash distributable to KMP unitholders.

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company in North America. KMP owns an interest in or operates more than 28,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP has an enterprise value of over $33 billion. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Combined, KMI and KMP have an enterprise value of approximately $55 billion.

Read the entire press release at kindermorgan.com 

H2S, Labor & Pipeline Shortages, Higher Service Costs Headline 2011

Eagle Ford Shale oil & gas was the talk of the town in San Antonio today. The oil and gas conference goes through tomorrow and will continue with both operators and service providers presenting. For everyone who wasn't able to attend, here are a few things we're hearing around the conference:

• H2S is a much bigger issue than reported in early Eagle Ford wells. No one was able to describe why, but wells are producing various amounts of H2S throughout the play. H2S can be treated, but wells aren't consistent either. In some cases, adjacent leases are producing vastly different amounts of the corrosive gas
• A lot of liquids are being produced, but we don't have enough pipelines to move the crude effectively. That will change over the next few years, but we'll experience a period of larger price differentials before it corrects itself
• Higher service costs have hit the operators hard in 2011. We've heard examples of well costs going up 50%+ year over year. A lot of it is service costs inflation, but a lot of it is longer laterals, larger completions, and wide spread use of more expensive proppants
• The labor shortage is a big issue. I won't guess a number, but there would be a lot more rigs active if there were people to provide all of the needed services
• If you've missed it, there's also a housing shortage across South Texas. As you move closer to the border, we've heard companies might build large scale man camps and move to a two weeks on, two weeks off schedule