Peregrine Midstream Partners' Subsidiary Fast Tracks Ryckman Creek Gas Storage Facility in Western Rockies

05.09.12

Houston, TX, May 9, 2012 – Ryckman Creek Resources, LLC, wholly-owned subsidiary of Peregrine Midstream Partners LLC, has started gas injections at its new high-deliverability, multi-cycle (HDMC) Ryckman Creek Gas Storage Facility in southwestern Wyoming near the Opal Hub. Construction of the 35 Bcf facility started in late September 2011. First gas injections from Northwest Pipeline commenced on May 1, 2012, followed by gas injections from Overthrust Pipeline several days later.

Ryckman Creek will have interconnections with five interstate pipelines, all of which are connected to the Opal Hub, including Questar, Ruby and Kern River in addition to Northwest and Overthrust. Gas injections from the various pipeline interconnections will commence in phases over the next few months as each interconnect becomes operational, until reservoir commissioning and pad gas injections have been completed this summer. Commercial operations are scheduled to start by September 1, 2012, with the first injections of customer gas.

“Even though we got a late start on construction last fall due to issues beyond our control, we have been able to keep the overall project on schedule, pulling some work originally scheduled for completion in 2013 into this year," said Darrell Poteet, Peregrine Executive Vice President, Pipelines & Surface Facilities Development & Management. "We battled the Wyoming winter at 7800 feet on the top of a mountain to achieve an in-service date that will allow our customers to start injecting gas this fall and withdraw gas this coming winter. We didn't want our customers to have to wait until next year for the facility to come online. This would have been a significant accomplishment in any weather, but especially so in freezing cold mountain-top conditions. “

Ryckman Creek construction includes six injection/withdrawal wells; two re-entry observation wells and two re-entry/recompletion saltwater disposal wells; a central gas/liquids separation and processing facility; 4.8 miles of new eight-inch diameter storage field flow lines; nearly 4 miles of 16-inch diameter header pipeline; one unidirectional and four bi-directional pipeline interconnects and meter stations; and approximately 30,000 horsepower of electric-drive compression.

Initial working gas capacity for Ryckman Creek's first phase is 18 Bcf for the 2012-13 gas storage season, which will increase to 25 Bcf by spring 2013 and 35 Bcf by spring 2014. A planned Phase II expansion would increase total working gas capacity to 50 Bcf or more depending on market demand. Maximum Phase I injection capability will be 350 MMcfd with a maximum withdrawal capability of 480 MMcfd.

About Peregrine Midstream Partners LLC
Headquartered in Houston, TX, Peregrine Midstream Partners is a privately-held limited liability company founded in 2009 by the former founders and management team of Falcon Gas Storage Company to pursue development and acquisition opportunities in the midstream energy sector. Peregrine’s midstream business model is focused on natural gas storage, transportation, gathering and processing; NGL extraction; crude oil and NGL production, storage, handling, marketing and sales in association with HDMC natural gas storage development and operations.  Please visit Peregrine Midstream Partners at www.peregrinempllc.com.


For more information, please contact:

Jeffrey H. Foutch    
Chief Commercial Officer  
Peregrine Midstream Partners   
713.974.5606      
jhfoutch@peregrinempllc.com

Or

Carole Minor
Encore Communications
713.880.9550
cminor@encorecommunications.com

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