PROJECTS

GRASS ROOTS PROJECT PROGRESSION

• Description: New or step out development where a client intends to drill test wells proving the new acreage or expansion plans;

• Early Infrastructure: Typically consists of:

  • Small diameter gathering lines, wellhead separation and dehydration;

  • Decentralized lease basis rental compression;

  • Small decentralized treating and gas conditioning equipment..

  • High pressure sales line connecting to the closest transmission pipeline.

• Description: Test wells proven successful and development program underway;

• Infrastructure: Gathering system expansion consists of:

  • Large diameter trunk and lateral lines covering the acreage; to central delivery points (CDP’s)

  • CDP locations typically contain separation facilities operated by either the client or Velocity;

  • Centralized compression and dehydration facilities;

  • Centralized gas treating and gas processing facilities as required to meet transmission pipeline specifications;

  • High pressure discharge line(s) connecting multiple transmission pipeline(s) where economically practical.

• Description: The current gathering system design inhibits the producer’s ability to (1) reduce pressures, (2) add production capacity from newly drilled wells;

• Infrastructure: Common infrastructure changes and additions include:

• Debottlenecking small diameter gathering systems with larger diameter trunk line(s) to increase hydraulic capacity for new production;

• Centralizing compressor stations and dehydration facilities with common suction trunk lines enabling load balancing and improved horsepower management increasing fuel efficiency and reliability;

• Improving technology, monitoring and control systems used to treat and process gas, reducing the costs per Mcf and maximizing revenues;

• Either acquire existing gathering systems or create partnerships with producers to centralize, expand, modernize and improve the efficiency of the existing gathering, treating and processing facilities..

• E&P clients entering a data room that includes midstream infrastructure, Velocity will:

  • Accompany the client to assess the value and condition of the midstream facilities;

  • Co-bid on the assets and agree to purchase, repair, and expand the existing infrastructure to support the E&P client’s development plans;

  • Submit a timely proposal to the client for Velocity to re-design, expand, own and operate the system Allowing our clients to run their acquisition economics inclusive of the actual fixed midstream costs going forward.

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