DALLAS, Jan. 13 /PRNewswire-FirstCall/ --
Crosstex Energy, L.P. (Nasdaq: XTEX) announced today that it has completed the
acquisition of the remaining 50% interest in the Will O Mills treating plant
previously owned by a subsidiary of Hanover Compressor Company (NYSE: HC), for
$2.2 million. Crosstex has owned 50% of the plant, located in Val Verde
County, Texas, since 2000. The plant has a treating capacity of approximately
60,000 mcf per day, and is currently treating approximately 12,500 mcf per
day. Earlier in 2002, Crosstex had acquired the Pandale Gathering System,
which supplies approximately 7,000 mmcfd of gas to the plant for treatment.
Two other pipelines also supply gas to the plant.
The acquisition of the Pandale System and the remaining 50% of the Will O
Mills treating plant are part of Crosstex's strategy to establish a core group
of assets in this area of West Texas. "The acquisitions of Pandale and Will O
Mills give us a base from which we can begin to grow a significant presence in
West Texas," said Barry Davis, President and Chief Executive Officer of
Crosstex. "This is a prolific area, with long-lived reserves, and we intend
to participate in the future development of the region."
In addition to increasing throughput by aggregating other volumes in the
area, Crosstex will improve operating costs by consolidating the workforces of
the two assets, and use them for other Crosstex assets in the area. Crosstex
has installed three amine treating plants in the area in the last eight
Crosstex Energy, L.P., a mid-stream natural gas company, operates over
1,700 miles of pipeline, two processing plants, and over 30 natural gas amine
treating plants. Crosstex currently provides services for over
700,000 MMBtu/day of natural gas. According to the Mastio & Co. 2002 Producer
Purchaser Satisfaction Survey, nearly 400 gas producers surveyed ranked
Crosstex Energy number one. Crosstex Energy, L.P.'s principal executive
offices are located at 2501 Cedar Springs, Suite 600, Dallas, Texas, 75201,
and its telephone number is 214-953-9500. Additional information about
Crosstex can be found at www.crosstexenergy.com .
This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All statements other
than statements of historical facts included or incorporated herein may
constitute forward-looking statements. Although the Company believes that the
expectations reflected in the forward-looking statements are reasonable, it
can give no assurance that such expectations will prove to be correct.