Friday, May 29, 2009 | Volume 2, No. 7

MIDSTREAMNEWSServing the Midstream Marketplace with News, Insight & Opportunities

BENTEK: Midcon prices improve on new pipeline capacityAccording to a new report “Mayhem in the Midcon,” released by BENTEK Energy,

a number of factors are converging this year that will result in major shifts within the 13-state Midcontinent gas market. The most significant development is the completion

of 3.0 BCFD of pipeline takeaway capacity during 2009 that willprovide producers new marketing opportunities and improve

regional pricing differentials. At the same time this new capacity is being placed into service, the REX East

pipeline expansion is expected to becompleted, tying together the marketsin Chicago, Michigan and Ohio withthe supply areas in the Rockies,Midcon and Southeast/Gulf.

Further complicating the market dynamics is a significant reduction in drilling activ-ity, resulting in production declines within the region and in some of the areas that bringgas to the Midcontinent.

“Midcontinent gas flow patterns have been in a state of flux over the past two yearsbecause of the REX West pipeline and the rapid growth of unconventional productionacross the region.

Spectra files for Michigan-to-Ontario PipelineBenefits from Midcon pipeline acquisition

Spectra Energy and Detroit-based DTE Pipeline Co. (sub of DTE Energy) filedwith Canada’s National Energy Board to own and operate the Dawn Gateway Pipeline – aproposed new international pipeline between Michigan Consolidated Gas

Company’s Belle River facility in Michigan and Union GasLimited’s Dawn Hub in Ontario.

The application follows a successful open season held last fall togauge market interest in the pipeline. The open season resulted in bind-

ing agreements for the sale of 280,000Dth/d, or 80% of the available capacity.

The proposed project will haveinitial firm transportation capacity of360,000 Dth/d, and will utilize a combination of new and existing pipelines, with a sched-uled in service date of November 2010.

Meanwhile, Spectra reported net income of $298 million in the first quarter, down15% from the prior year quarter’s $367 million.

NGAS sells 50% of Appalachia gathering systemFarms-out acreage to Chesapeake Energy

NGAS Resources is looking to raise cash for drilling by selling certain midstreamassets. First, it is divesting a 50% undivided interest in most of its Appalachian gas gath-ering facilities to Seminole Gas Company for $28 million. The pipelines to be sold span

485 miles through SE Kentucky, eastern Tennessee and western Virginia. The gathering sys-

tem connects the major-ity of NGAS’ wells to an interstatepipeline system with access to gasmarkets in the eastern U.S. It alsoincludes a 116-mile open access system that spans parts of SE Kentucky and SW Virginiaand connects to Duke Energy’s East Tennessee Natural Gas interstate pipeline system

After closing, NGAS will remain operator of the divested facilities and will havefirm capacity rights for delivery of 30 MMCFD through the system, which is more thanample to cover its current production.NGAS continues to “aggressively develop” its NewAlbany Shale play in western Kentucky, where it has drilled 37 wells in the Haley’s Millfield discovery. CONTINUES on page 13

CONTINUES on page 5

CONTINUES on page 6

MarkWest opens anotherMarcellus plant

MarkWest Liberty Midstream &Resources, a partnership between MarkWestEnergy Partners (60%) and NGP

Midstream& Resources

(40%) has opened a cryogenic processingplant in Washington Co., Pennsylvania, tosupport the development of the MarcellusShale in southwest Pennsylvania and north-ern West Virginia by Range Resources andother Marcellus producers.

The new plant is operating at its capac-ity of 30 MMCFD and includes a depro - panizer to extract propane from the gasstream that is sold into the regional market.When combined with the existing 30MMCFD refrigeration plant that was installedlast November, MarkWest Liberty has totalprocessing capacity in SW Pennsylvania of60 MMCFD.

NGAS benefited from its East Coastlocation, receiving $8.10/Mcf for itsAppalachia production.

Marcellus processing capacityshould reach 270 MMCFeD by theend of 2010.

Spectra has received commitments for80% of its transnational pipeline project.

The Midcontinent basis dropped to anaverage of minus $1.73 in 2008, comparedto only minus 88 cents in 2007.

CONTINUES on page 12

FEATURED LISTINGS

TULSA CO., OK GATHERING SYSTEMShutIn Pipeline With Equipment. 10 Sq Miles.OKLAHOMA SYSTEMSignificant CBM Exploration Within Acreage.Shallow Coal Seam Gas Production.Low Pressure-Stripper Plant-Sales Lines.100% OPERATED WI FOR SALE CBM/PIPEShutIn Pipeline: Raw Unleased AcreageSuitable To: Production & Pipeline BuyerOptimal Scenario: Buy Pipeline & DrillSELLER HAS SOLID RIGHT OF WAYS

G 5617PL

LAMPASAS CO., TX PIPELINE12.5-Miles Pipeline Project Needed.COPPERAS COVEExcavation Has Begun. PROJECTCompletion Expected In 90 Days.SEEKING PROJECT PARTICIPANTS100% WI Possible For Pipeline.Active w/ New Production.Needs Max Capacity: 12 MMCFDPotential Cash Flow: $270,000/MnProved Reserves In Area.Operator Has Drilling Plan—— Needs Pipeline Development.CALL FOR MORE INFORMATION

PL 6389

MIDSTREAMNEWS Friday, May 29, 2009 2

Corporate EAST TEXASDALLAS CO., TX LEASE18.5-Gross/Net Acres.BARNETT SHALE LEASEBenjamin F Smith A-1377100% MINERAL INTEREST FOR LEASE

L 3669M

EAST TEXAS GATHERING SYSTEM8-Mile Gas Pipeline.MARSHALL/HARRISON AREANear Penn Virginia Well.MultiPay East Texas Reservoirs. ETX PIPELINECotton Valley, Travis Peak.Haynesville Development Possible.Pipeline Capacity: 10,000 MCFDMultiple Line Right-Of-Way.High Pressure Line.Interconnects w/ Two Main ETX Lines.SUBJECT TO PRIOR SALECONTACT SELLER FOR MORE INFO

G 1425PL

EAST TEXAS LEASEHOLD2-Counties. 1,425-Net Leasehold Acres.HAYNESVILLE SHALE POSITIONMultiple Target Potential.SHELBY COUNTY: ETX LEASE— 746.5 Net Acres.— 3 Years + 2 Year OptionNACOGDOCHES COUNTY:— 680 Net Acres.— 3 Years + 2 Year Option100% OPERATED WI; 75% NRISurrounded By Large Independents.Seller Has Set Asking Price.CALL PLS FOR DATA PACKAGE

DV 5753L

ProposedCompressor Station Proposed

Compressor Station

ProposedCompressor Station

El Paso’s Ruby Pipeline

El Paso seeks Ruby Pipeline partnersEl Paso Pipeline Partners is talking to potential partners to help fund its Ruby

Pipeline. Pacific Gas and Electric had originally signed on, but backed out last May. Still,the project remains on schedule to come online in March 2011.

Ruby would carry as much as 1.5 BCFD (expandable to 2.0 BCFD) fromthe Opal hub to an interconnect in Malin, Oregon. El Paso has already secured1.1 BCFD of firm capacity. El Paso has already committed $1.0 billion of the

project’s $3.0 billion price tag.In the first quarter, El Paso also invested $8.5 million on the Piceance Lateral expan-

sion in Wyoming. The partnershipsaid it has more than adequate liq-uidity to execute on its projectinventory well into 2010.

El Paso reported first quarter net income of $46 million, compared with $27.6 mil-lion a year ago due to increased equity investments following the acquisition of additionalinterests in Colorado Interstate Gas and Southern Natural Gas last year.

El Paso Pipeline Partners owns 40% and 25% of CIG and SNG, respectively. Equityearnings from CIG were $16.5 million in the quarter, compared with $5.7 million a yearago, while SNG generated equity earnings of $12.5 million for the quarter, compared with$9.4 million for the first quarter of 2008.

El Paso has already committed $1.0 billionof Ruby’s $3.0 billion price tag.

SemGroup eyes third-quarter bankruptcy exitWill emerge as publicly-owned company

Midstream firm SemGroup, LP has filed a “Plan of Reorganization” with the U.S.Bankruptcy Court for the District of Delaware in an effort to exit bankruptcy by the thirdquarter of this year. CEO Terry Ronan said the plan will allow SemGroup to emerge with

a stronger balance sheet, reduced debt, and more efficient operations, adding thatthe company will remain a leader in the midstream energy business.

SemGroup – previously the 14th largest privately held company in the U.S.– will now emerge as a publicly traded company. The new plan will transfer all of the equityof the reorganized company to its creditors, who will also receive as much as $2.7 billionfrom the company.

In return, SemGroup will get $500 million in working capital from a group of priorlenders with which to re-enter the crude marketing business. The company will also refi-nance an existing $120 million secured facility to partially fund construction of the WhiteCliffs pipeline.

SemGroup said it will maintain its headquarters in Tulsa, and remain separated fromformer subsidiary Semgroup Energy Partners LP.

Call To List 713-650-1212

Oregon

MalinOpal Hub

CaliforniaNevada

Idaho Wyoming

Utah

Friday, May 29, 2009 MIDSTREAMNEWS3

EAST TEXASEAST TEXAS LEASEHOLDS~5,915-Net Mineral Acres.SABINE & SAN AUGUSTINE CO.Primary Objective: Haynesville ShaleSecondary Objective: James LimeAcreage Is Available For Lease. ETX LEASECALL PLS TO LEARN MORE

L 5771

HARRISON & MARION CO., TX LEASES1,510-Mineral Acres For Lease.HAYNESVILLE SHALE TRENDMajority Of Acreage Covers All Depths —— Some Limited To Below Cotton Valley.Access To Significant Title Resources.Seller Will Deliver 75% NRI.

MINERALS

CALL SELLER FOR ADDITIONAL DATA

L 5609

HARRISON CO., TX MINERALS~1,484-Gross Acres. ~468-Net Acres.HAYNESVILLE SHALE LEASE12-Properties. Minerals For Lease.Very Active Area: Bossier-Haynesville Play.Unleased Mineral Interest Available.

L 3389

HARRISON CO., TX SWD SERVICECommercial SWD & Trucking Business.HAYNESVILLE / COTTON VALLEY4-SWD Facilities Available.20-Water Hauling Tractor/Trailers. SERVICEAGENT HAS MORE DETAILS

SWD 5085

LIMESTONE CO., TX DISPOSAL WELL1-SWD.EAST TEXASCommercial Salt Water Disposal Facility.Single Well Facility/No Trucks.Permitted For 12,000 bls/d. TX/SWD100% OPERATED WI AVAILABLEMonthly Oil Sales: 180 MBO SWMonthly Skim Oil: 300 BOLast Reported Cash Flow: $50,000/MnCALL GENERATOR TO LEARN MORE

SWD 3965

SAN AUGUSTINE CO., TX LEASE~73,000-Net Mineral Acres.GULF COAST COAL BASINRights To Wilcox Base. 3,000 Ft.-5,200 Ft.10 Ft. - 20 Ft. Cumulative Coal.Mineral Rights For Lease. LEASE30 Pipeline Thru South End of Property.

L 9808DV

Pipelines & ProcessingSempra Energy chairman hails outstanding quarter

Sempra Energy expects to begin receiving cargoes at its Cameron LNG facility inLouisiana by June, with commercial operations slated to commence sometime in the third

quarter. The move will boost Sempra’s LNG segment – which also includes facil-ities in Baja California and Port Arthur, Texas – and which recorded a net loss of$7.0 million in the first quarter 2009, although this figure was up from a loss of

$9 million in last year's first quarter. Overall, however, the San Diego-based midstream company raised its first quarter

earnings 40% from a year ago to $316 million. Chairman Donald Felsinger called the com-pany’s results “outstanding.”

The San Diego Gas & Electricbusiness increased earnings to $99million in 2009 from $74 million inQ1 2008. Earnings rose due to thefavorable impact of SDG&E's rate case, which was approved by the California PublicUtilities Commission and went into effect in the third quarter 2008.

First quarter earnings for Southern California Gas Co. were $59 million, comparedwith $57 million in the prior-year's quarter. Pipelines & Storage segment earnings rose42% to $37 million, due primarily to increased contributions from Mexico operations andMobile Gas.

But Sempra’s biggest earner was its RBS Commodities segment, whose earningsnearly doubled in 2009 to $114 million. During the most recent quarter, the RBS SempraCommodities joint venture benefited from improved results in both gas and oil marketing.

Sempra Generation's earnings were $43 million in the first quarter 2009, comparedwith $45 million in last year's first quarter. In April, Sempra Generation announced con-struction of a new 48-megawatt expansion of its existing 10-MW power-generation facilitynear Las Vegas. The combined 58-MW installation would become the largest operationalphotovoltaic solar-power facility in North America. Construction will commence afterSempra Generation contracts with customers for the facility's power output.

PNGS increases Gulf Coast storage capacityPAA Natural Gas Storage is conducting a non-binding open season for 2 BCF of

firm storage service to be available beginning in the second quarter of 2010 at its PinePrairie salt-cavern storage facility in Evangeline Parish, Louisiana.

Phase I consists of three storage caverns with total permitted working capacity of 24 BCF. The first two cavern wells have been placed into service with current capacity of14 BCF. Cavern well three is expected to come on line in the second quarter of 2010.

Earlier this year, PNGS filed for an additional 24-BCF Phase II expansion at PinePrairie, which would entail the construction of two new 10-BCF caverns and the expansionof cavern wells two and three from 8 to 10 BCF each. Pending receipt of requisite permits,PNGS is targeting to bring this capacity into service in stages beginning in 2011.

Pine Prairie has bi-directional connectivity to eight major pipeline systems servingthe northeastern, midwestern and southeastern gas markets. PNGS is indirectly owned 50%by Plains All American Pipeline and 50% by Vulcan Capital.

DCP Midstream completes Discovery Pipeline repairsDCP Midstream Partners spent the first quarter repairing its Discovery offshore

gathering system, which was damaged during Hurricane Ike. DCP also finished upgradingits Wyoming gathering system and returned its East Texas assets, including the Carthage

Hub, to normal operation following a February fire. In April, The part-nership acquired 25.1% in the East Texas assets from parent companyDCP Midstream.

DCP’s natural gas services segment increased its gross margin by $2.1 million froma year ago to $30.6 million for the first quarter, reflecting the addition of Michigan assetsand volume growth in the Piceance Basin, partially offset by lower gas throughput volumesin North Louisiana.

The San Diego-based midstream companyraised its first quarter earnings 40% from ayear ago to $316 million.

Increase Deal Flow and Business Opportunities. Call PLS at (713) 650-1212 to subscribe today or access www.plsx.com for more information.

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210-826-0700

MIDSTREAMNEWS Friday, May 29, 2009 4

EAST TEXASSHELBY CO., TX LEASEHOLD470-Acres.DEEP HAYNESVILLE RIGHTSUnit Is Presently HBP.OUTRIGHT SALE OF DEEP RIGHTS —— OR CARRIED INTEREST IN WELLGathering System In Place. HAYNESVILLEWill Sell Pipeline w/ Rights Or —— Stand Alone.SELLER HAS MORE DETAILS

L 5724PL

NORTH TEXASARCHER CO., TX MINERALS258-Acres For Lease.Gunsight Sands Target.Mississippi Zone. MINERALSDepth: 1,200 FtMINERALS FOR LEASESeller Will Deliver 80% NRI.CONTACT SELLER TO LEARN MORE

L 5546FO

LAMPASAS CO., TX PIPELINE12.5-Miles Pipeline Project Needed.COPPERAS COVEExcavation Has Begun. PROJECTCompletion Expected In 90 Days.SEEKING PROJECT PARTICIPANTS100% WI Possible For Pipeline.Active w/ New Production.Needs Max Capacity: 12 MMCFDPotential Cash Flow: $270,000/MnProved Reserves In Area.Operator Has Drilling Plan—-— Needs Pipeline Development.CALL FOR MORE INFORMATION

PL 6389

TARRANT CO., TX LEASE7.5-Net Acres.BARNETT SHALE PLAY MINERALSFay A-530 Abstract.50% MINERAL INTEREST AVAILABLE

L 3609M

SOUTH TEXASBEE CO., TX PROSPECT~139-Acre Lease.SOUTH MINERAL FIELD 1.9 BCFObj 1: Slick Sand. 7,700 Ft.Obj 2: Luling Sand. 7,850 Ft.Structural Trap Formed By Closure.3-D Seismic & SubSurface Well Records.77% NRI Delivered On Lease.Field Had Produced: 41 BCF100-Acres Structural Closure UpDip—From Past Production.Est Reserves: 1.9 BCFTotal Well Cost: $1,065,800GEOLOGIST HAS MORE DETAILS

DV 2082L

Pipelines & ProcessingEnbridge gains support for LaCrosse Pipeline

Enbridge Inc. held a successful non-binding open season for its proposed EnbridgeLaCrosse Pipeline, which will transport 1.0 to 1.8 BCFD from Carthage, Texas, toWashington Parish in Southeastern Louisiana.

Enbridge will now move forward with the project, which could intercon-nect with as many as 12 pipelines, depending on shipper inter-est. Enbridge may also extend the pipeline to Florida Gas

Transmission's Station 10 near Wiggins, Mississippi. The proposed project is expected tobe completed in early 2012.

EnCana commits to ETP’s Tiger pipelineEnergy Transfer Partners entered into binding 10-year contracts with EnCana and

another shipper to transport a total of 500 MMCFD on its Tiger Pipeline. These new com-mitments are in addition to ETP’s 15-year contract with Chesapeake for 1.0 BCFD, bring-

ing total capacity commitments to 1.5 BCFD. ETP is continuing tonegotiate with other shippers for capacity on the pipeline.

The 180-mile Tiger Pipeline will connect to ETP’s dual 42-inchpipeline near Carthage, Texas, extend through the Haynesville Shale

and end near Delhi, Louisiana, with interconnects to at least seven interstate pipelines serv-ing the Northeast, Southeast, Mid-Atlantic and Midwest markets. The pipeline is antici-pated to cost between $1.0 billion and $1.2 billion to construct, depending upon the finalthroughput capacity design, and should be in service in 2011.

TransCanada constructing $300-million pipeline in MexicoCanadian midstream giant TransCanada won on a contract to build, own and oper-

ate a $320-million pipeline in Mexico. The project is supported by a 25-year contract forits entire capacity with Comision Federal de Electricidad (CFE), Mexico's state-ownedelectric company.

The proposed Guadalajara Pipeline will follow a 193-mile route from an LNG termi-nal under construction near Manzanillo to Guadalajara. The 30-inch pie will have500 MMCFD of capacity. The majority of the capital expenditures are expectedto be made in 2010 with a targeted in-service date of March, 2011.

The Guadalajara Pipeline would serve power generation load in Manzanillo andGuadalajara as well as connecting to an existing PEMEX gas line near Guadalajara. Thesource of natural gas will be an LNGterminal near Manzanillo, primarilysupplied by Peruvian LNG.

Meanwhile, TransCanada is sell-ing its North Baja Pipeline to partially-owned subsidiary TC PipeLines LP for aggregate consideration of $395 million, consistingof $200 million in cash and 6.37 million shares. TransCanada's will however increase itsownership in the TC PipeLines partnership to 42.6%. Proceeds will be redeployed togrowth projects, such as the $12-billion Keystone Pipeline.

TransCanada acquired the North Baja Pipeline System in 2004 and will continue tooperate the pipeline following the transfer of ownership. The system is an 80-mile gaspipeline that extends from Southwestern Arizona to a point on the California/Mexico bor-der and connects with a gas pipeline system in Mexico. North Baja consists of 30 and 36-inch pipe with a capacity of 600 MMCFD.

TransCanada has a history in Mexico, as it already owns and operates the 81-mileTamazunchale Pipeline in central Mexico. In the 1990s, TransCanada built the 435-mileMayakan Pipeline and the 133-mil El Bajio pipelines. Those pipelines, later sold, were thefirst non-PEMEX pipelines in Mexico.

In the 1990s TransCanada built theMayakan and El Bajio pipelines – Mexico’sfirst pipelines not owned by PEMEX.

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Spectra’s Texas Eastern Expansion Project

Friday, May 29, 2009 MIDSTREAMNEWS5

But the company’s midstream MLP, Spectra Energy Partners reported net income of $28.5million in the first quarter, up from $24.1 million for the first quarter of 2008 due to higherrevenues from East Tennessee Natural Gas of $3.1 million associated with theGreenway/Nora, Glade Spring and CNX expansion projects. These revenue increases weremostly offset by transaction costs associated with the acquisition of OGT and OGG, which

it acquired in April from Atlas for $300 million in cash. OGT is a 565-mile gas pipeline system that extends from southeast

Oklahoma through Arkansas into southeast Missouri. It links gas sup-plies in the Fayetteville Shale and Arkoma Basin to Midwest and

Northeast markets. OGG is a 365-mile, fee-based gas gathering system in easternOklahoma and western Arkansas.

Spectra is also expanding its Texas Eastern Transmission pipeline to accommodateincreasing volumes from the Haynesville Shale area. In March, the company held an openseason to gauge shipper interest in the project, which will provide customers a number oftransportation options from receipt points on Texas Eastern’s East Texas rate zone.Capacity will be based on the success of the open season. The ETX Expansion Project istargeted for a phased in-service, commencing early 2010.

Spectra Energy Partners also recognized $6.9 million of equity earnings from its24.5% interest in Gulfstream in the first quarter, benefiting from the Phase III and PhaseIV projects which were placed into service during the third and fourth quarters of 2008.

Another $9.9 million in equity earnings came from Spectra’s 50% interest in MarketHub Partners, up from $7.8 million a year ago, reflecting higher revenues from the EganCavern 4 expansion which was placed into final service during Q2 2008.

During the quarter, the MLP spent $1.8 million for expansion and maintenance cap-ital for the Gas Transportation and Storage segment plus an additional $5.0 million forGulfstream and $9.6 million for MHP expansion projects.

Spectra files for pipeline CONTINUED from page 1SOUTH TEXASDUVAL CO., TX PROSPECT456-Gross/Net Leased Acres.WILCOX TRENDProspect Targets Shallower Amplitudes—With AVO In Pressured Section Above Z-Sand.3-D Seismic & SubSurface Geology.100% OPERATED WI; ~75% NRIStrong Target Amplitudes Equivalent To—Productive UpDip Upper Wilcox Sands.All Amplitudes In Area Produce.Est Reserves: ~13 BCF ~13 BCF/3D

Dry Hole: $4,500,000; Compl: $8,000,000Part of A Larger Package-See DV 3980CONTACT PLS PROSPECT CENTRE

DV 3983L

KARNES CO., TX PROSPECT4-Well Program. 875-Acres.Upper Wilcox L Series Targets. STX/DV/3DReklaw Carrizo Behind Pipe (7 Locations).3-D Seismic Data & Well Control.Low Pressure Gas Line Available On Lease.85% WI Available; 77% NRIEstimated IP: 34 BOPD & 2.0 MMCFDEst Reserves: >38 BCF & >645 MBCDHC: $907,000; Compl: $419,000DETAILED FINANCIALS AVAILABLE

DV 5261

Texas Eastern TransmissionEnergy Transfer Tiger (proposed)ANR Haynesville Lateral (proposed)CenterPoint CP LineGulf CrossingGulf South ETX to MSMidcontinent ExpressSESHKinder Morgan TexasEnergy Transfer S.E. Bossier

Monroe

Castor

Atlanta

CarthageHub

HaynesvilleShale

Joaquin

Perryville/Delhi

Source: Spectra Presentation

MIDSTREAMNEWS Friday, May 29, 2009 6

SOUTHEAST TEXASCOLORADO CO., TX PROSPECTS6-Proposed Wells.UPPER FRIO TREND 3.0 BCFTargeting Upper Frio. 3,000-3,700 Ft.3-D Seismic & Subsurface Geology——Bright Spot Supported.READY TO DRILL100% OPERATED WI; 75% NRIWithin 1-Mile From Existing Pipelines.Est Reserves/Well: 300-500 MMCFEst Reserves/Project: 2.0-3.0 BCFDHC: $1,270,000; Compl: $810,000GENERATOR HAS MORE DETAILS

DV 6400

SOUTHEAST TEXAS LEASE~16,500-Net Mineral Acres.GULF COAST COAL BASINTo Top Of Midway. 2,300-5,800 Ft.5 Ft. - 22 Ft. Cumulative Coal. LEASEMineral Rights For Lease.Multiple Pipelines Throughout.

DV 9845L

WEST TEXASDAWSON CO., TX ACREAGE8,200 (+/-) Contiguous Acres.RESOURCE DEVELOPMENT PLAYSpraberry Trend Production: North/SouthSurrounded by Silurian & Devonian— To Test ReEntry Potential.Spraberry & Wolfcamp Development Trend— ReEntry Candidates Possible.100% Leasehold Interest, 75% NRI LEASESAll Depths and Rights - No Depth Release— Provisions in Leases.MultiZone Potential: Clearfork, Spraberry— Gin Sand, Wolfcamp, Strawn, Devonian— Fusselman, and EllenburgerLong Lease Expiration Dates—3-Year Leases with 2-Year Options.

L 3958DV

MIDLAND CO., TX LEASE SALE80-Potential Wells. ~3,500-Net Acres.WOLFBERRY TRENDSpraberry / Wolfcamp. 8,000-10,000 Ft.Devonian Formation. 12,000 Ft.Resource Play. Development Drilling.Defined By SubSurface Geology. WOLFBERRY100% OPERATED WI; 77% NRILeases Expire: March 2010

L 5754DV

As a result, the Midcontinent Production Zone basis dropped to an average of minus $1.73in 2008, compared to only minus 88 cents in 2007,” noted Russell Braziel, managingdirector of BENTEK Energy.

“But new pipelines out of the region are changing things fast. Two major pipelineexpansion projects, MEP and the Gulf Crossing project, recently began service and areproviding Midcontinent producers with new outlets into the Southeast/Gulf region. Inaddition, Texas Gas has brought two laterals on line to deliver more than 1.0 BCFD ofFayetteville Shale gas to pipelines serving markets in the Midcontinent, Northeast andSoutheast. The bottom line regarding near-term market impacts from these projects is that,together, they provide a significant supplyrelief valve as well as a doorway to thehigher-priced Southeast/Gulf region. Theyshould be expected to put upward pressureon Midcon producing zone price basis unless Midcontinent production growth fills thenew capacity, but that’s an unlikely prospect given recent drilling declines.”

The BENTEK report indicates that Midcontinent regional drilling has fallen offsharply in recent months and production declines are expected to follow. The Midcontinentrig count tumbled to only 147 active rigs in mid-April versus an average of 335 active rigsworking the area in 2008. BENTEK forecasts that Midcontinent production will dropabout 12% from current levels of 8.0 BCFD to about 7.0 BCFD by the end of 2011.

Gas spot prices continue decline—Meanwhile, according to the EIA, natural gas spot prices fell by large amounts at all

trading locations in the Lower 48 States for the week ending May 20, reversing the increas-ing trend that began in the beginning of May.

The average decline in spot prices between May 13 and May 20 was 62 cents, anddeclines ranged between 8% and 22%. Prices fell as a result of mild weather, resulting inweak gas demand for heating and for power generation for cooling. The Henry Hub pricefell by 67 cents to $3.75. At other trading locations in Louisiana, declines in prices rangedbetween 59 and 68 cents. Since early February, prices at the Henry Hub have remainedbetween $3 and $5.

Midcon pipeline capacity prices improve CONTINUED from page 1

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TRC ConsulTanTs l.C.Integrated Economics & Decline Curve Analysis

West Texas prices fell by an averageof 78 cents (19%) last week.

Estimated Percent Current One-Week Implied Net Prior 5-Year DifferenceStocks Prior Stocks Change from (2004-2008) From 5 Year

All Volumes in BcF 5/15/09 5/08/09 Last Week Average Average

East Region 892 827 65 837 6.6

West Region 345 332 13 252 36.9

Producing Region 879 854 25 640 37.3

Total Lower 48 2,116 2,013 103 1,729 22.4

Source: Energy Information Administration: Form EIA-912, “Weekly Underground NaturalGas Storage Report,” and the Historical Weekly Storage Estimates Database. Row andcolumn sums may not equal totals due to independent rounding.

Current Natural Gas Stocks by Region

Estimated Average Wellhead Price For Natural GasNov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09

Price ($ per Mcf) 5.97 5.87 5.15 4.16 3.72 3.43

Price ($ per MMBtu) 5.80 5.70 5.00 4.04 3.62 3.33

Note: Prices were converted from $ per Mcf using an average heat content of 1,029 Btu percubic foot as published in Table A4 of the Annual Energy Review 2006. Source: Energy Information Administration, Office of Oil and Gas.

CONTINUES on page 8

CallFor Info

OnNew

Prospects(DV)

Friday, May 29, 2009 MIDSTREAMNEWS7

A&D NewsWEST TEXASREEVES CO., TX PROJECT3-Prospects. 3,000-Net Acres.DEEP DELAWARE BASINWolfcamp, Barnett & Woodford Shale,Pennsylvanian, & Fractured DevonianOn-Site Salt Water Disposal SystemOn-Site Gas Gathering System100% WI Available; 75% NRI 295+ BCF~13 BCF PDP Wolfcamp Production.Est Reserves: 295+ BCFBased On Decline Curve & VolumetricsCALL PLS FOR ADDITIONAL DETAILS

DV 5268

NORTH LOUISIANAGRANT PH., LA LEASE~33,000-Net Mineral Acres.GULF COAST COAL BASINRights To Wilcox Base. 4,200 Ft.-6,000 Ft.19 Ft. - 35 Ft. Cumulative Coal.Mineral Rights For Lease. LEASE24 & 16 Pipeline Along West Side.

L 9756DV

JACKSON PH., LA ACREAGEMineral Acreage In Producing Trends—Vernon,EROS, CHATHAM & CLEAR BRANCHObj 1: Upper & Lower Cotton Valley11,500 - 15,000 Ft. Ptd ACREAGE/3DPLUS: Rodessa, James & Sligo3-D Seismic Data.SELLER SOLICITING LEASE OFFERSFOR AVAILABLE ACREAGERecent Horizontal Completions Show— Potential 5-8 Times Higher Than VerticalReserves Potential: Multiple TCFSELLER HAS DETAILED PACKAGE

DV 3887L

JACKSON PH., LA PROJECTCotton Valley & Bossier Gas.VERNON, CHATHAM, CLEAR BRANCHCotton Valley Targets. 1,500-15,000 Ft.Upper Cotton Valley Group Production— Occurs Across Mineral Block. LEASEAcreage Within Producing Bossier Trend.3-D Shows Downthrown Growth Fault Trap.Undeveloped Trend Acreage.Multiple TCF Reserves Potential.

DV 3768L

NORTH LOUISIANA MINERAL LEASE~671-Net Mineral Acres.BOSSIER PARISHHaynesville, Bossier, Smackover,Cotton Valley & Hosston Targets. LEASELease Will Deliver 75% NRI.CALL TO LEARN ACREAGE COST

L 6402

Atlas closes NOARK system saleAtlas Pipeline Partners reported a net loss of $23.2 million for the first quarter, bet-

ter than a net loss of $43.7 million a year ago. The loss was despite the partnership closingits sale of the NOARK gathering system to Spectra Energy Partners for $300 million.

Proceeds went to reduce borrowings. In April, Atlas formed a JV with Williams known as Laurel Mountain

Midstream, LLC, which will own and operate Atlas’ Appalachia Basin gas gath-ering system. The JV includes assets in the Marcellus Shale in SW Pennsylvania, butexcludes Atlas’ northern Tennessee operations. The partnership will receive $90 million incash, a preferred equity right to proceedsunder a $25.5 million obligation fromWilliams and a 49% equity interest in thejoint venture.

The agreement assesses the initial enterprise value of the system in Pennsylvania,New York, Ohio and West Virginia at $250 million. The JV intends to be the leading gath-ering system in the SW Pennsylvania portion of the Marcellus Shale. Although the systemwill be operated on a day-to-day basis by Williams, all important decisions will be madejointly. The transaction is expected to close during the second quarter and Atlas will use the$90 million of net proceeds to reduce borrowings.

Revenue for the Appalachia segment increased 4% from a year ago to $10.9 millionfor the first quarter, as throughput volume increased over 30% to a record 98.5 MMCFDdue to the connection of new operated wells to the Appalachia system.

In the Midcontinent, revenue fell 38% from a year ago to $228.4 million in Q1 2009,even as processed volumes on the Elk City/Sweetwater, Velma, Chaney Dell andMidkiff/Benedum system all increased in the first quarter. The decline resulted from lowertransportation rates. System-wide volumes of 1,357.8 MMCFD for the first quarter rose11% from a year ago.

Valero pays $725 million for European refinery stakeValero Energy is entering the European downstream market by acquiring The Dow

Chemical Company’s 45% interest in a refinery in the Netherlands for $725 million. Therefinery is 55%-owned and operated by French firm Total and has total throughput capacity

of 190,000 BPD. Originally built in 1973, the refinery received major

upgrades in the mid-1980s, mid-1990s, and throughout this decade. It has a large, distil-late-hydrocracking unit with capacity of 68,000 BPD.

France’s Total also owns an interest in the Massvlatke Olie Terminal in Rotterdam,which is one of the largest oil terminals in the world.

Atlas’ SW Pennsylvania gatheringsystem is valued at $250 million.

PLS now offers “After-Sale Services” to buyers and sellers. Leveraging our extensive in-houseresources and strategic partnerships, we can now handle your deals from “cradle to grave.” PLS’ due diligence and document processing services include, but are not limited to: copying, digital document conversion and coding of your land records and technical files.

After-Sale ServicesDue Diligence & Document Transfer

After-Sale ServicesDue Diligence & Document Transfer

New

Service

Susan Coburn ‑ Divestments & After-Sale Services www.plsx.comOffice: 713.650.1212 Cell: 713.504.2540Email: scoburn@plsx.com Canada Contact: 403.294.1906

We pay cash foroverrides and royalties.

nobleroyalties.comNoble Royalties, Inc.

NORTH LOUISIANARED RIVER PH., LA LEASE~31,000-Net Mineral Acres.GULF COAST COAL BASINRights To Wilcox Base. 300-1,200 Ft.7 Ft. - 15 Ft. Cumulative Coal. LEASEMineral Rights For Lease.30, 36, & 42 Pipelines Through Center.

L 9798DV

SABINE PH., LA LEASE~6,000-Net Mineral Acres.GULF COAST COAL BASINRights To Wilcox Base. 4,000 Ft.-6,500 Ft.10 Ft. - 20 Ft. Cumulative Coal. LEASEMineral Rights For Lease.4 Pipeline 2-3 Miles to Northeast.

L 9745DV

SABINE PH., LA LEASE PKG~70,000-Net Mineral Acres.GULF COAST COAL BASINRights To Wilcox Base. 300-1,400 Ft.9 Ft. - 24 Ft. Cumulative Coal. LEASEMineral Rights For Lease.30 Pipeline 4-6 Miles to SE.

L 9766DV

SABINE PH., LA LEASE SALE~11,533-Acres.HAYNESVILLE SHALEAll Acreage Is Contiguous. LA/ACREAGE100% OPERATED WI; 75% NRILeasehold Is Available For Sale.CALL PLS TO LEARN MORE

L 5773

WINN, LASALLE, CALDWELL PH., LA126,000-Acres.CRETACEOUS/JURASSIC PLAY TRENDSCalvin, Cotton Valley & Bossier, Knowles— Hosston & Rodessa, James & Sligo.5,000 Ft. to 25,000 Ft. Ptd. ACREAGE/3D2nd Targets: Tuscaloosa, Glenn Rose— Mooringsport, Paluxy & Selma Chalk.900-Miles 2D & Two 3D Seismic Surveys.SELLER SOLICITING LEASE OFFERSFOR AVAILABLE ACREAGEReserves Potential: Multiple TCFSELLER HAS PACKAGE

DV 3687L

MIDSTREAMNEWS Friday, May 29, 2009 8

Generally, spot prices across the Lower 48 were between $3 and $4 per MMBtu, withhigher prices in the Northeast and Florida. The average price in the Northeast was$4.15/MMBtu. Additionally, at the Florida Gas Transmission Citygate trading area, theonly trading area for which data are collected in Florida, the average price was$4.22/MMBtu. Prices have recovered somewhat from lower levels in April, when prices atmany trading locations fell below $3 per MMBtu. However, in the Rocky Mountain region,prices were $2.93 per MMBtu on average on May 20.

But the largest regional price declines for the week occurred in the West Texas,California, and Arizona/Nevada. West Texas prices fell by an average of 78 cents (19%);Arizona/Nevada prices fell by 77 cents (19%); and California prices fell by an average of73 cents, or 18%. The smallest declines occurred in the Northeast, falling on average 56cents or about 12%. The relatively low prices could eventually recover, as the declining rigcount is expected to reduce production. Baker Hughes reported that the natural gas rotaryrig count fell to 728 as of May 15, the lowest level in more than 6 years.

ListingsAreFree

Midcon pipeline capacity prices improve CONTINUED from page 6

Regional Spot Prices for Natural Gas

Spot Prices Thu Fri Mon Tue Wed($ per MMBtu) 14-May 15-May 18-May 19-May 20-May

Henry Hub 4.10 4.05 4.02 3.99 3.75

New York 4.42 4.43 4.45 4.36 4.16

Chicago 4.00 4.01 3.98 3.89 3.71

Cal. Comp. Avg.* 3.86 3.79 3.85 3.71 3.48

Futures ($/MMBtu)

June Delivery 4.292 4.098 4.139 3.914 3.970

July Delivery 4.414 4.217 4.265 4.030 4.098

*Avg. of NGI’s report average prices for: Malin, PG&E citygate and Southern California Border.Source: NGI’s Daily Gas Price Index (http://www.intelligencepress.com)

Venezuelan government seizes Williams’ assetsWilliams confirmed reports that the Venezuelan government has seized two of its

operated assets in the country - El Furrial and PIGAP II. After a long period of non-pay-ment by government-owned PDVSA, Williams last month issued notices of default under

its services agreements. The government’s seizure of assets and ter-mination of the contracts gives Williams the right to seek paymentsvia international arbitration.

Williams has investments in and operates entities that provideservices to PDVSA under long-term agreements. Services include

medium-pressure compression, high-pressure gas injection, gas liquids extraction, and gasliquids fractionation.

Williams reported non-cash charges to net income attributable of $241 million infirst-quarter 2009 as a result of this seizure by the Venezuelan government.

Back in the U.S., Williams has received FERC approved to expand its Transco gaspipeline to serve markets in the SE United States. New service from the Mobile Bay Southproject would be available in the second quarter of 2010. The project is designed to create253,500 Dth/d of southbound, year-round firm transportation capacity on the Mobile BayLateral from Transco's mainline at Station 85 near Butler, Alabama, to its interconnect withGulfstream Natural Gas System in Coden, Alabama.

The Mobile Bay South project will require construction of a new 9,470 horsepowercompressor facility at Station 85 in Choctaw Co. Williams estimates that the project facil-ities will cost $37 million.

MidstreamPLS can put its experience, marketingand publishing resources to work tosell your midstream assets.

Call Today: 713-650-1212

www.plsx.com

Friday, May 29, 2009 MIDSTREAMNEWS9

SOUTH LOUISIANALIVINGSTON PH., LA PROSPECTS60,000-Acres For Lease of Option,GULF COAST TREND SLA/DVDefined Wilcox Oil Prospects— Deeper L Tuscaloosa Delta Front Sands— Trapped On Growth Faulted Anticlines.Reprocessed 2D Show Growth Fault Leads— Similar To Lockhart & Livingston Fields— Potential Of ~32 MMBO & 98 BCF2nd Reservoir: Shallower Miocene & Frio ShoreMiocene Bright Spot Production Present— Northern Livingston PH: Poss EUR 3.5 BCFComplete Well Log Files.Multiple Vintage Prospects/Interpretations.CONTACT LAND COMPANY FOR FLYER

DV 3946L

RED RIVER PH., LA LEASES175-Acres Within Section/Unit(Acreage is Only Available Drillsite in Unit— Encana Leases All Other Acreage)208-Mineral Acres(6-Miles West of Encana Wells) LEASES655-Mineral Acres(Under CHK Discovery Well & CHKWells Drilling in South Caddo Parish)SELLER HAS ADDITIONAL INFORMATION

L 3964

Haynesville Shale

Regency Plant Facility

Bossier Shale Trend

Haynesville Shale Trend

Regency Intrastate Gas LP

Regency Field Services LP

Regency Field Services LP Logansport

Regency Gulf States Transmission Corp

Regency Liquids Pipeline LP

Regency Intrastate Gas LP Proposed Bienville Loop 36 in

Regency Intrastate Gas LP Proposed Elm Grove 36 in

Regency Intrastate Gas LP Proposed Winnsboro Loop 42 in

0 5 10 20 Miles

Regency reduces capex budgetRegency Energy Partners reduced its 2009 capex budget by $13 million to total

$107 million in growth capital, with $82 million dedicated to its compression segment andthe remaining $25 million identified for the gathering & processing segment. Regency

already spent $45 million of its total capex in the first quarter.All capital expenditures related to the Haynesville Expansion Project have

been excluded from the projected budget as those costs are beingfunded by the new Haynesville Joint Venture, which consists of

Regency (38%), GE Energy (12%) and Alinda Capital Partners (50%). Regency con-tributed its 320-mile RIGS pipeline system to the JV, and in return GE Energy FinancialServices and Alinda contributed $126.5 million and $526.5 million in cash, respectively.

Regency generated net income of $148 million in the first quarter, compared to $10million a year ago, with the increase due to a $134 million gain from the contribution ofRIGS to the Haynesville Joint Venture.

“Our ability to close and securefinancing for the Haynesville JointVenture in the first quarter at termsaccretive to unitholders allows Regency to capture first-mover advantage in meeting initialHaynesville Shale demand,” CEO Byron Kelley added. Regency has secured commitmentsfrom shippers for 92% of the pipeline’s 1.1-BCFD capacity and has requests for all of theremaining capacity. The project is on budget with a planned in-service date of December31, 2009.

The pipeline will consist of a 25-mile, 36-inch-diameter Bienville line, a 21-mile, 36-inch Elm Grove line and a 75-mile, 42-inch Winnsboro line, with interconnects toColumbia Gulf, Trunkline & ANR. The total cost of the project is projected at $650 millionand Regency expects to complete the pipeline on time and within budget.

Regency’s gathering & processing segment reported net income of $56 million in thequarter, up $2.0 million from a year ago. Throughput averaged 1.0 MMbtu/d, and processedNGLs averaged 23,000 BPD for the quarter, both flat with a year ago. The partnership isalso working to reduce debt by pricing $250 million of senior notes at 94.496% of the prin-cipal amount to yield 10.5%. The offering closed in May 20.

Regency spent $45 million of its annualcapex of $107 million in the first quarter.

Waskom Plant Elm Grove Plant

Dubberly Plant

Lisbon Plant

Dubach Plant

Regency’s Haynesville Shale Pipelines

www.plsx.com

MIDSTREAMNEWS Friday, May 29, 2009 10

SOUTH LOUISIANAST. BERNARD PH., LA PROSPECTJurassic Cotton Valley Deltaic Sandstones.Proposed Depth: 27,000 Ft. (TD)Extensive 3-D Seismic Coverage.Pipeline Located In Area. 5.0 TCF80% Working Interest Available.Est Reserves: Up To 5.0 TCFCONTACT SELLER TO LEARN MORE

DV 5637

VERNON PH., LA LEASE SALE~8,343-Net Acres. 1-Contiguous Block.HAYNESVILLE SHALE100% OPERATED WI; 75% NRI HAYNESVILLE

Leasehold Position Available For Sale.CALL PLS FOR INTRO TO SELLER

L 5772

MISSISSIPPIMARION CO., MS PROSPECT16,000-Net Acres. Hosston Leads Identified.MISSISSIPPI SALT BASINHosston & Jurassic. >23 BCF15,500 Ft. Ptd & 24,000 Ft. Ptd.100-Miles 2D Seismic Data: Show Growth— Fault Anticlines & Stratigraphic Traps— Cotton Valley/Bossier Reservoir PotentialSOLICITING LEASE OFFERS— FOR ACREAGEAdjacent To Hosston Production.Est Reserves: >23 BCFProlific Oil & Gas Reservoirs.SELLER HAS DETAILED PACKAGE

DV 3719L

SIMPSON CO., MS PROSPECT46,278-Optional & 6,400-Prospect Acres.GULF COAST SMACKOVERSmackover Reservoir. 24,000 Ft. SMACKOVERHosston. Rodessa & Sligo Potential.Faulted Anticlinal Structure: 3-Way Closure— At Smackover Level.160-Miles 2-D Seismic In Option Area.LEASE AT NEGOTIABLE TERMSMost Analogous to Field w/49 BCFMain Well w/121 Ft Pay. Cumm’d 33 BCF— and Still Producing 2.0 MMCFDEst: >220 BCF/120 Ft. Pay/1,000-AcresOwner Will Consider Offers For 10,000 Ac40-Miles 70’s Vintage Shell Seismic— Reprocessed in 2008LANDOWNER HAS DETAILED PACKAGE

DV 3466L

NoCommissions

BriefsAllegheny Energy hired Rodney Dickens

as president of its electric delivery company,Allegheny Power. He comes to Alleghenyafter a 32-year career with Public ServiceElectric & Gas Company, headquartered inNewark, New Jersey, where he most recentlyserved as VP, asset management & central-ized services.

Berry Petroleum is selling its East Texasgas gathering system to a private party for$18.5 million in cash. The company will enter

into a concurrent long-term gas gath-ering agreement for its East Texasproduction. In addition, Berry is

increasing its capital budget by $32 millionup to $132 million in 2009. Debt repaymentfor the balance of the year is still projectedto be $60 million.

Chevron is considering whether to shutits 54,000-BPD refinery in Hawaii and turn itinto a terminal. The refinery is Chevron’s only

facility in Hawaii, but it has more than500,000 BPD of capacity from its two

California plants. The announcement followssimilar actions by Sunoco and Valero.Conversely, refiner Tesoro is planning anupgrade to its 95,000 BPD refinery in Hawaii.

Gateway Energy reported that demandfell on its Waxahachie pipeline system in the first quarter, causing a quarterly net lossof $135,438. Nevertheless, Gateway said itexpects to see attractive assets come on the market this year at realistic valuations.Gateway owns gas gathering, transportationand distribution systems in Texas, Louisianaand the GOM.

GeoPetro Resources reported a firstquarter net loss of $1.8 million as volumesfell at the gas treatment plant at theMadisonville field in East Texas. The field’stwo wells should see increased production inJune. GeoPetro is in the process of consoli-dating the upstream and midstream portionsof Madisonville under common ownership.Subject to capital availability, the companyplans to workover the Mitchell #1 well andfrac and connect via gathering line theWilson #1 well soon.

Kentucky USA Energy hired BluegrassPipeline Construction to build the gas gath-ering system that will tie-in the company’swells to a third-party pipeline in westernKentucky. To date, Bluegrass has fused, laidand tested over 20,000 feet of pipe for thecompany’s gathering system. All 16 wellsshould be connected by June.

Plains All American Pipeline expandedthe scope of its storage project at Cushing,Oklahoma, from 1.7 MMBO of tankage to2.3 MMBO while maintainingthe projects expected costs at$46 million. In addition, Plains istaking 4.8 MMBO of its tankageout of service, rather than conduct tankageupgrades required by the federal govern-ment. These tanks may be returned to serv-ice if market conditions improve.

Rockies Express Pipeline revealed fur-ther delays in completing horizontal drillingunder the Illinois River. The company nowexpects initial REX-East service to com-mence in the first half of June (rather than late May), providing transportation todelivery points in Illinois and Indiana only,through interconnects with several interstatepipelines, including Natural Gas PipelineCompany of America and Trunkline GasCompany. However, projected in-servicedates beyond Illinois and Indiana areunchanged. Service to Lebanon, Ohio, isprojected to commence June 15, with an initial capacity of 1.6 BCFD (increasing to 1.8 BCFD at a date to be determined). Fulloperation of the entire REX-East pipeline to Clarington, Ohio, is projected to beginbefore November 1, 2009.Anadarko subsidiary Western Gas

Partners reported first quarter net income of $16.6 million. Total throughputvolumes for the quarter were 1,063MMCFD, down 1% from the priorquarter, and 2% from the year agoquarter. Capital expenditures totaled $6.5million during the quarter.

Palmer Drug Abuse Program’s

2009 Annual

TheaTerFundraiser

FEATURING AN EXCLUSIVE DRESS

REHEARSAL OF

Theatre Under The Stars

CABARETMonday, June 15, 2009 7:15 p.m., Houston, TX

The Hobby Center For The Performing Arts

Reserve your tickets by calling281-589-4833

VIP Reception Sponsors

Mr. and Mrs. Charles D. Davidson & Scotia Waterous

All proceeds to benefit the Palmer Drug Abuse Program

For more information go towww.pdaphouston.org

Palmer Drug Abuse Program, a 501(c)(3) non-profit, hasbeen helping teens, young adults and their parentsovercome drug and alcohol abuse for over 38 yearsthrough counseling, 12-step support groups, educationand tools to return to a healthy lifestyle. These pro-grams improve our neighborhoods, our city and ourschools by returning healthy kids to a community tobecome contributing members of society.

The Land RigClearinghouse, LLC

call For Drilling rig inventory

(469) 384-3813www.landrigclearinghouse.com

snowgren@gmail.com

Executive

Producers

STARRING

Friday, May 29, 2009 MIDSTREAMNEWS11

ARKANSASARKANSAS ACREAGE OFFERING2,300-Acres.FAYETTEVILLE SHALE PLAY FAYETTEVILLEProspect Has Proven Reserves.8 Counties w/ Established Fields.FOR ASSIGNMENT OR JOINT VENTURECALL PLS FOR INTRO TO SELLER

DV 5500L

ARKANSAS MINERALS FOR LEASE7,180-Gross Acres. 4,700-Net Acres.MOST ACREAGE IN UNION CO.Additional Small Tracts In: Columbia, MINERALSLincoln, Calhoun, And Jefferson Co.MINERALS FOR LEASE

L 3779

CALHOUN CO., AR LEASE~56,000-Net Mineral Acres.GULF COAST COAL BASINRights To Wilcox Base. 1,000-2,400 Ft.18 Ft. - 38 Ft. Cumulative Coal.Mineral Rights For Lease. LEASE6 & 4 Pipelines— Along North End Of PropertyLooking For 3-Year Term.

L 9844DV

JEFFERSON CO., AR LEASE~18,000-Net Mineral Acres.GULF COAST COAL BASIN LEASETargeting 3,000-3,500 Ft. or Greater20 Ft. Cumulative Coal.Mineral Rights For Lease.10, 12, & 24 Pipelines Throughout.

DV 9838L

LINCOLN & DREW CO., AR LEASE~21,000-Net Mineral Acres.GULF COAST COAL BASINTargeting 3,000-3,500 Ft. of Greater20 Ft. Cumulative Coal. LEASEMineral Rights For Lease.10, 12, & 24 Pipelines Throughout.

L 9834DV

STONE CO., AR LEASE SALE53,000-Gross Acres.FAYETTEVILLE SHALE LEASE62 Controlling Sections Within County.Seeking Partners or Lease Buyer5-Year Term With A 5-Yr. Add’l OptionCONTACT PLS FOR LEASE DATA

DV 4614L

Price, WTX Intermediate Crude Oil Spot Price, & Henry Hub Natural Gas Spot Price

NYMEX Natural Gas Futures Near-Month Contract Settlement

1/29/2009

2/5/2009

2/12/2009

2/19/2009

2/26/2009

3/5/2009

3/12/2009

3/19/2009

3/26/2009

4/2/2009

4/9/2009

4/16/2009

4/23/2009

4/30/2009

5/7/2009

5/14/2009

Dolla

rs p

er M

illio

n B

tu

Note: The West Texas Intermediate (WIT) crude oil price, in dollars per barrel, is convertedto $/MMBtu using a conversion factor of 5.80 MMbtu per barrel. The dates marked byvertical lines are the NYMEX near-month contract settlement dates.Source: Natural gas prices, NGI’s Daily Gas Price Index (http://intelligencepress.com), WTI price, Reuters News Service (http://www.reuters.com)

NYMEX Natural Gas Settlement PriceWTI Spot PriceHenry Hub Spot Price

$12

$8

$4

$0

NYMEX Closing Dates

2/25/ 2009 3/27/ 2009 4/28/ 2009

NGS Energy targets El Paso’s storage facilityNGS Energy LP and El Paso Corp. signed an agreement under which NGS gained

the right to purchase El Paso's Pinal Co., Arizona, natural gas storage facility and all asso-ciated acreage, wells, geological and technical data and rights currently held by El Paso.

The storage project is in the Picacho Basin and would include a 9-mileheader system that could connect to Transwestern Pipeline, El Paso Natural Gas Pipeline, as well as numerous new and

proposed gas-fired plants.“The growth in the Arizona market has not received the appropriate response from the

gas storage industry,” said NGS Energy President Laura Luce. “El Paso's work drilling andcoring multiple wells to test the viability of the geology and feasibility of the project arethe first steps to address Arizona's storage need.”

“The Picacho salt basin will be developed into cyclable gas storage that could provideArizona customers with needed flexibility,” continued Luce.

NGS estimates the current acreage position could result in a 20 BCF facility that willutilize above ground evaporation ponds. FERC filings will occur this summer with opera-tions slated for summer 2012.

Flying J, Big West look to sell Bakersfield refineryFlying J and its subsidiary Big West Oil are considering a sale of their interest in the

Bakersfield refinery complex in California. Deutsche Bank Securities is financial advisorto assist in the process. The complex comprises a 70,000-BPD refinery and supportingoperations network on a 942-acre site. Associated with the refinery are logistics assetsincluding a product loading facility, crude truck terminal and 2.6 MMBO of tankage.

Big West acquired the Bakersfield refinery from Shell in March 2005 and has subse-quently invested significant capital in the refinery, which produces a full slate of petroleumproducts, including low sulphur CARBOB gasoline, CARB diesel and gas oil.

The refinery has also received all significant permits to construct a hydrocracker tofurther enhance its profitability by converting lower-value gas oils to lighter, higher mar-gin diesel and gasoline products.

Not a member? Call (713) 650-1212.

Want More Listings?Members can search PLS’ extensivelisting database at www.plsx.com.

12

OKLAHOMATULSA CO., OK GATHERING SYSTEMShutIn Pipeline With Equipment. 10 Sq Miles.OKLAHOMA SYSTEMSignificant CBM Exploration Within Acreage.Shallow Coal Seam Gas Production.Low Pressure-Stripper Plant-Sales Lines.100% OPERATED WI FOR SALE CBM/PIPEShutIn Pipeline: Raw Unleased AcreageSuitable To: Production & Pipeline BuyerOptimal Scenario: Buy Pipeline & DrillSELLER HAS SOLID RIGHT OF WAYS

G 5617PL

KENTUCKYCLAY/LESLIE CO., KY PROSPECTS26,000+-Acres. Development Play.Multiple Pay Zones Identified. <3,200 Ft.600+-UnDrilled Development Locations.Excellent Horizontal Candidate.Complete Pipeline Infrastructure. DEVELOPMENT163-Wells Currently Producing.Production Can Increase w/ Treatment.>100 Mi Of Pipeline Infrastructure.

DV 5295

KENTUCKY LEASES FOR SALE~35,134-Gross & ~21,254-Net Acres.MCCLEAN, OHIO, WEBSTER,MUHLENBERG & HOPKINS CO. KY/ACREAGE100% OPERATED WI; 82.5% NRILeasehold Is Available For Sale.PLS HAS MORE INFO AVAILABLE

L 5775

OHIOOHIO DRILLING PROSPECT40,000-UnDeveloped Acres.MARCELLUS SHALEProductive Shallower Zone Upside.Pipeline & Gathering Systems In-Place.Successful Analogs Identified.Depths Range: 5,000-10,000 Ft. OH/DVSeller Will Deliver 87.5% NRI.Modest Drilling Costs.Est Reserves/Well: 0.5 - 2.0 BCFEEst Reserves/Project: 20 - 50 BCFELease Terms: Half 5-Year & Half 10-YearPLS HAS MORE INFO AVAILABLE

DV 6442L

PENNSYLVANIACLINTON & CENTRE CO., PA LEASE~9,164-Acres.APPALACHIAN BASINSignificant Marcellus Shale Position.Acreage Is Available For Lease. PA LEASECALL PLS FOR CONTACT INFO

L 5774

MIDSTREAMNEWS Friday, May 29, 2009

MICHIGANCENTRAL MICHIGAN PROSPECT2-Wells. 2,800-Acres.MICHIGAN BASINNewly Developed Prospect Well AddedGlenwood & Prairie Du Chien Targeted.2-D Seismic Lines.49% Working Interest Available MI/DVProportionate 80% NRI; 1/3 for 1/4—Geology & Land CostsEst Reserves: 1.5-10 BCFDHC: $2,000,000; Compl: $1,000,000LAND MANAGER HAS MORE DETAILS

DV 1967L

MANISTEE CO., MI PROSPECTNIAGARAN REEF TRENDTotal Vertical Depth: 5,060 Ft.Pipeline Within 2,000 Ft. MI/DVSeller Will Deliver 80% NRI.Initial Production: 25 BOPD & 500 MCFDEst Reserves: 250 MBO & 1.0 BCFDHC: $550,000; Compl: $250,000CALL OPERATOR FOR MORE INFO

DV 5316

OKLAHOMABEAVER & HASKELL CO., OK LEASES11-Leases. 5-Counties.MOCANE, ELMWOOD, CESTOS FIELDSMORROW, OSWEGO & CHESTER100% OPERATED WI FOR SALEVarious NRI. LEASESOperator: XOG Operating LLCAGENT HAS ADDITIONAL DATA

L 3893

GARVIN CO., OK PROSPECT5-Proposed Wells. ±200-Acres.Multiple Reservoir Potential. ~1.6 BCFETotal Depth: ~4,750 Ft.Low-Risk Prospect. Pipeline Nearby.Up To 37.5% WI Available; 75% NRI (Lease)Offsets Recent 500 MCFD Completion.Est Reserves: ~100 MBO & 1.0 BCFGENERATOR HAS MORE DETAILS

DV 5425

OKLAHOMA ACREAGE SALE~277-Net Development Acres.WOODS & WOODWARD CO.Hugoton Embayment ACREAGEAll Acreage HBP. No Depth Restrictions.Solid Operator In Area.Cost-Effective Entry Into Proven Rsrvs.

L 6412DV

www.plsx.com

MarkWest Liberty anticipates bring-ing on line 20 MMCFD of additional refrig-eration capacity by the end of Septemberand completing the installation of a new120 MMCFD cryogenic processing plant inearly 2010. The joint venture further antici-pates having total Marcellus cryogenic pro-cessing capacity of up to 270 MMCFD bythe end of 2010.

In the Midcontinent, MarkwestEnergy Partners has formed a JV withArcLight Capital Partners to construct theArkoma Connector pipeline, a 50-milei n t e r s t a t epipeline thatwill provide 625,000 Dth/d of WoodfordShale takeaway capacity while interconnect-ing with the Midcon tinent Express and GulfCrossing pipelines. Under the terms,ArcLight acquired 50% equity interest in thepipeline for $62.5 million. MarkWest willoperate the pipeline and ArcLight will pay aservices fee to MarkWest to manage the jointventure. Following start-up, MarkWest andArcLight will invest equally in the associatedoperating and expansion costs.

Financially, MarkWest reported a firstquarter net loss of $29.6 million as a resultof lower commodity prices. The partnershiphas $32 million of cash and a $435.6 mil-lion revolving credit facility that matures in2012. Currently, $109.8 million is availablefor borrowing after consideration of $31.4million of outstanding letters of credit.

Realized gains were $44.9 million in thefirst quarter of 2009, including $15.2 millionfrom the early settlement of certain hedgepositions, compared to a realized loss of$19.1 million in the first quarter of 2008. This$64 million increase reflects effective hedges.

For the first quarter, MarkWest’sgrowth capital expenditures were $121.6 mil-lion. Total 2009 growth capital expenditures,excluding Liberty Midstream & Resources,are forecasted at $225 million.

MarkWest CONTINUED from page 1

Experienced.Capable.Knowledgeable.Flexible.Ready To Work.For over 25 years, we have been helping independent producers acquire, develop, exploit and service producing properties.Mezzanine capital can be an attractive part of your project financing plan. Let us show you why Five States is your best business partner.

FIVE STATESENERGY CAPITAL, LLC

214.560.2571www.fivestates.comFor more information: capitalinfo@fivestates.com

Wanted:Gulf Coast & Permian Basin Assets

Call Richard Martin at (713) 650-1212

Friday, May 29, 2009 MIDSTREAMNEWS13

PENNSYLVANIAMARCELLUS PROSPECT FOR SALE40,000-Acres.NORTHEASTERN PENNSYLVANIAPrimary Target: Devonian Marcellus.Multiple Secondary Objectives. MARCELLUSPipeline In Place.CONTACT SELLER FOR SHOWING

DV 5311

MARCELLUS SHALE ACREAGE DEALPennsylvania-Based E&P Company.Leasing/Developing Marcellus Shale.SEEKING INDUSTRY PARTNER(S) ACREAGECONTACT GENERATOR FOR DETAILS

L 4168DV

MARCELLUS SHALE LEASE414-Acres.ARMSTRONG CO. MARCELLUSRight In The Heart Of The Play.Lease Available Due To Pugh Clause.Surrounded By Producing Wells.Lease HBP To Only 6,000 Ft——Ground Floor Investment OpportunityACREAGE COSTS WAY BELOW MARKETTerms Are Negotiable.Serious Inquiries Only.CALL PLS FOR INTRO TO SELLER

L 5472

POTTER CO., PA PROSPECT SALE3-Contiguous Blocks. ~9,000-Acres.APPALACHIAN BASINTargeting Marcellus Shale.Excellent Pipeline Access. MARCELLUSLeases Held By Production.50% WI Available; 83%-84.5% NRICONTACT EXPLORATIONIST FOR INFO

DV 5074

SUSQUEHANNA CO., PA ACREAGE32-Potential Wells. 2,600-Acres.APPALCHIAN BASINTargeting Marcellus Shale. 7,000 Ft.Acreage Available For Lease.100% OPERATED WI Available. LEASEEst Reserves/Well: 5.0+ BCFCALL AGENT TO LEARN MORE

L 2272

TIOGA CO., PA LEASEHOLD~880-Gross Acres. ~816-Net Acres.MARCELLUS SHALEGAINES & ELK TOWNSHIPS LEASE85% NRIFive Year Leases Executed Feb-Mar 2008.CONTACT AGENT TO REQUEST PACKAGE

L 3608

MONTANABILLINGS CO., MT PROSPECT41,456-Net Acres.Mutiple Objectives Identified.Defined By 2-D Seismic Lines.Seller Will Deliver 81% NRI. MULTIPAYTested At 46 MMCFD.SELLER HAS MORE DETAILS

DV 6262

MONTANA ACREAGE - STATE SALE19-Counties. 122,000-Acres.CRAZY MOUNTAIN BASIN LEASESNorth-Northwest of Big Timber.Sweetgrass County Has 40% of Acreage.Area Lease Play In Early Development— Horizontal Potential In Various Shales.Exploratory Activity in Areas By Majors.Lands Will Be Offered At The Department— Of Transportation Auditorium

L 3569M

RICHLAND CO., MT MINERAL LEASE960-Gross & 160-Net Acres.ELM COULEE FIELDBakken Shale Play. MINERALSOffsetting Wells Operated By —EOG And Headington.

L 5529

NEW MEXICO

LEA CO., NM LEASEHOLD480-Acres.TEAS AREA LEASEMorrow, Atoka, & Bone Spring Potential.Seller Will Deliver 80% NRI.Lease Expires: September 1, 2012PLS HAS EXACT LOCATION OF LEASE

L 5048

LEA CO., NM MINERALS±1,500-Net Mineral Acres.MINERALS FOR LEASE MINERALSMiscellaneous Leases Near Tatum, NM.~8 Adjacent Producing Zones Identified.3-Year Lease: $200/Acre + 75% NetAGENT HAS MORE DETAILS

L 6468

NORTH DAKOTA

NORTH DAKOTA LEASEHOLDS142-Lease Options.BAKKEN SHALE POSITIONS430,000-Gross & 350,000-Net Acres.3-5 Year Lease Terms. LEASESAll Terms Negotiable.

L 5516

The company has 46,000 acres therefor development. Under terms of the agree-ment, Seminole Gas Co. will have a six-month option to purchase NGAS’ remain-ing 50% interest in the gathering system for

another $22 million. Undercertain (unspecified) condi-tions, NGAS may require

Seminole to exercise this purchase option. NGAS CEO William Daugherty said

the deal “will be a significant liquidityevent for our company, with proceeds help-ing to reduce outstanding debt and providefinancial flexibility.” NGAS is also a part-ner with Seminole in two other gas pro-cessing facilities in the region.

In its second recent deal, NGASentered into a farmout agreement withChesapeake Energy on 56,000 (42,000 netundeveloped) acres in the AppalachianBasin in Letcher and Harlan Co., Kentucky.Chesapeake and royalty owner PennVirginia will gain participation rights forup to 25% WI in NGAS’ future wells.NGAS has an annual commitment of fourwells under the farmout, with an additionalcommitment to drill six vertical DevonianShale wells by the June. Chesapeake willcontinue to own over 100 producing wellsand a gathering system that connects toNGAS’ gathering system.

In its first quarter report, NGASrevealed a net loss of $537,000, despiteincreasing daily production from 9.7MMCFeD a year ago to 11.5 MMCFeD inthe first quarter 2009. Still, the companybenefited from strong Appalachia differen-tials. Although the company received anaverage of $6.74/Mcf in the first quarter –down from $8.51/Mcf a year ago – itsAppalachia gas received a much betterprice of $8.10/Mcf, due to the multiplepipelines in place and their close proximityto the densely-populated Northeast region.

NGAS CONTINUED from page 1

TRIADENERGY CORPORATION

1616 Voss, Ste. 650Houston, TX 77057Ph: (713) 337-1440Fax: (713) 337-1490

www.triad-energy.com

Listings Marked By PLS Logo

Are Opportunities Being Handled By

The PLS Marketing Arm.www.coqueststructuredproducts.com/csp/home.html

Office: (214) 219-7555Fax: (214) 326-6666

Energy Hedging SolutionsYour Full Service Energy Broker

MIDSTREAMNEWS Friday, May 29, 2009 14

WYOMINGSWEETWATER CO., WY ACREAGE~29,810-Gross/Net Acres.EASTERN GREEN RIVER BASIN LEASESNonProducing Leasehold.Multi Reservoirs: Mesa Verde Almond Bars– Mesa Verde Estuarine, Lewis Turbidites– and Fractured Shales, Fox Hills Shoreline– Fort Union Coals & Mesa Verde Fluvial.100% OPERATED WI. ~83% NRI89% Federal Lands & 11% State Lands.Leases Expire 2011 And Beyond.CONTACT AGENT FOR UPDATE

L 3961DV

WEST COAST & ALASKAADAMS, FRANKLIN & GRANT CO., WA74,507-Net Acres. 76,716-Gross Acres.COLUMBIA RIVER BASIN1,500-13,000 Ft. Gas PlaySEEKING EQUITY PARTNERS DRILLINGSeismic/Magnetics/Gravity— Define Prospects.Adjacent To Gas Pipelines.

DV 6959

ALASKA EXPLORATIONProspects Plus Large Acreage Tracts.STINSON OIL DISCOVERYEAST POINT THOMPSONNorth Slope & Cook Inlet.Favorable Geologic Indicators. EXPLORENear Production Infrastructure.New Government Incentives.Will Sell Or Lease Individual Prospects.Or Will Consider Package Sale.Unique Opportunity.Internet Data Room & Files.

DV 6417L

ALASKAN OPPORTUNITIES50-Leases.COOK INLET BASIN >6.0 TCFEMultiple Prospects Areas In Basin.Obj 1: Hemlock, Tyonek & Beluga FmsObj 2: Sterling Formation100% WI Available.Potential Industry Alliances Possible.Est Rsrvs/Prospect: 300 MMBO & 1.0 TCFCooperative Industry Effort.New Government Tax Benefits.New Tax Benefits - WORTH THE LOOKCALL GEOLOGIST TO LEARN MORE

DV 5840L

International BriefsColumbia’s Ecopetrol has assumed

responsibility for the operation and man-agement of Ocensa pipeline, the mainpipeline of Colombia that connects theCusiana and Cupiagua fields with the portof Covenas on the Caribbean Sea. InMarch, Ecopetrol acquired Enbridge'sshare in Ocensa, increasing its holdingfrom 35.5% to 60%. Enbridge had man-aged Ocensa's operations since its startup in 1995.

Exxon Mobil secured arrival of first LNGcargo at the South Hook receiving terminalin Wales during the first quarter. The termi-

nal adds to the UnitedKingdom’s LNG

import capacity, with the ability to deliverup to 2.0 BCFD into the U.K. market. Theterminal forms part of the Qatargas II jointventure which will supply gas to the U.K.from Qatar’s North Field.

Indian Oil Corporation received a $3billion loan with which to fund its 300,000-BPD refinery project on India’s east coast.The loan is from a group of 21 lenders ledby the State Bank of India. The refinery hasa 2012 completion date. With a refiningcapacity of 1.2 MMBPD, IOC was thelargest refiner in the country until recently,when Reliance Industries started up its660,000 BPD refinery.

Officials in Iraq are asking the country’sforeign oil producers to build a refinery inthe country. A number of major oil and gascompanies plan to begin developing eightof the country’s largest fields this year.

Petrobras has agreed to supply 788MMBO of crude to China’s Sinopec over a period of 11 Years. Exports to China are

slated to reach 150,000 BOPD in2009, rising to 200,000 BOPDfrom 2010 to 2019. The two com-

panies will also jointly explore certain AMIs.In connection with the deal, the ChinaDevelopment Bank supplied Petrobras witha $10 billion loan. In 2008, China imported60,849 BOPD from Brazil, up 30.5% from2007, according to Platts.

PetroVietnam has begun blending oilproducts at its 130,000-BOPD refinery inVietnam, with fully operational, commercialgasoline production slated for October.Currently, the refinery is accepting threecargoes of crude (about 1.8 MMB permonth), all from Vietnam (Bach Ho field).

Russia is targeting a December start-update for its Kozmino oil terminal, which willexport crude via pipeline from the coun-try’s Pacific Coast to international markets.The terminal will be supplied by the600,000-BPD ESPO pipeline, currentlybeing constructed by Transneft. In addi-tion, Rosneft is constructing a 400,000-BPD refinery, to open in 2013, to serve the terminal.

Shell hopes to restart its 86,000-BOPDClyde Refinery in Sydney, Australia, thisJuly after it was temporarily shut last Nov -ember to repair ongoing mechanical prob-lems. Shell is also modifying the refinery’s

hydrodesulfurization unit to enableit to meet the new Australian sulfurstandard in diesel, which came

into effect on January 1. The Clyde refineryproduces ~82,000 BPD of petroleum prod-ucts, supplying 50% of the market in NewSouth Wales. Australia has a total of sevenrefineries, including two each operated byShell, Caltex and BP and one byExxonMobil.

China’s Sinopec has negotiated a 50%stake in the country’s proposed $9.0 billionrefinery/petrochemical complex that isbeing built with partners Dow Chemical(10%) and Shell (10%) and the country ofKuwait (30%). The complex will be in theGuangdong province and will have a300,000-BPD capacity, all of which willcome from Kuwaiti oil fields. The deal willincrease Kuwaiti exports to China from200,000 BOPD up to 500,000 BOPD.

South Korea’s National Oil Companyhas opened a 1.8 MMB storage facility forpetroleum products, increasing its totalstorage capacity to 140 MMB. The facilityhas six tanks, each with 300 MMB ofcapacity. KNOC spent $80 billion to buildthe refinery in Pyeongtaek.

Woodside Petroleum agreed withApache and Kuwait’s Kufpec for the sale of gas from the Julimar and Brunello fieldsoff Western Australia to be used at the

Pluto LNG project. Woodside isconstructing a $9.0-billion, 4.3 mil-lion-ton-per-year LNG production

train in Australia to process gas from its90%-owned Pluto field. First gas is tar-geted for 2010.

Why wait for the capital you need? If you are a small- tomid-sized operator with a project in the $1 MM to $20 MMrange, contact Patriot Exploration at 713-353-3997.

The Energy Law Firm the Energy Industry Goes To

www.burlesoncooke.com

www.plsx.com

patriotexploration.com

WEST COAST & ALASKAGLENN CO., CA PROSPECT586-Net & Gross Acres.SOUTH OF MALTON-BLACK BUTTEKione Sands Objective.Depth: 1,500-1,600 Ft. CA/DV/2DReprocessed 2-D Seismic Lines.50% WI Available; 80% NRIAnalogs Cumm’d 350-1,500 MCF.Est Prospect Rsrvs: ~500-1,500 MMCFDHC: $400,000; Compl: $200,000EXPLORATION MANAGER HAS DETAILS

DV 5743

NORTH SLOPE & BEAUFORT SEA10-Leases.STINSON FIELDEast Of Point Thomson FieldTertiary, PreTertiary, PreCambrian Horizons.— Drillable From Onshore North Slope.PROVEN PRODUCTION NORTH Leases Exceptionally Researched. SLOPE100% WI Available.Potential Industry Alliances Possible.Analog Field Has 300 MMBO & 4.0-7.0 TCF.Cooperative Industry Effort.New Government Tax Benefits.RARE OPPORTUNITY - GIANT RESERVESCOMPANY MAKER OPPORTUNITYCALL GEOLOGIST FOR MORE INFO

DV 5480L

MULTISTATE

ARKANSAS & LOUISIANA LEASE~20,000-Net Mineral Acres.GULF COAST COAL BASINRights To Wilcox Base. 800-1,200 Ft.8 Ft. - 15 Ft. Cumulative Coal. LEASEMineral Rights For Lease.Multiple Pipelines.

L 9796DV

ILLINOIS & KENTUCKY ACREAGE~229,000-Net Acres.NEW ALBANY SHALE LEASES300-400 Ft Of Pay Thickness.Most Acreage In Rock Creek Graben.Kentucky Acreage:— Crittenden, Livingston, Marshall,

Union & Webster Co.Illinois Acreage: MULTISTATE

— Hardin, Jackson, Johnson, Massac,Pope & Saline Co.

Majority Of Leases Expire: 2010-20113-Year And 5-Year Extension Clauses.AGENT HAS MORE DETAILS

L 6448DV

MARCELLUS SHALE PROSPECTSeeking JV Partner.Pennsylvania & West Virginia. MARCELLUS25,000-Acres Under Lease.CONTACT SELLER TO LEARN MORE

L 3789

Petroleum Listing ServiceP.O. Box 4987Houston, TX 77210Phone: 713-650-1212Fax: 713-658-1922Website: www.plsx.com

EditorKyle Francis (kfrancis@plsx.com)

Graphic DesignerKathy Clark (kclark@sbcglobal.net)

Advisory BoardCameron O. Smith, Rodman & Renshaw, LLC

M. Lynn Bass, GasRock Capital, LLCCathy Sliva, BlueRock Energy Capital, LTDFrank Pottow, Greenhill Capital PartnersAdrian Goodisman, Scotia Waterous

Alan Smith, Quantum Resources ManagementDavid Marchese, Haddington Ventures, LLCDoug Jacobson, Chesapeake Energy Corp.John Gargani, Southwestern Energy Co.

Robert Turnham, Goodrich Petroleum Corp.

To obtain additional information on properties for sale in this MarketAlert, pleasecontact our office: 713-650-1212 or by fax:713-658-1922 with the property number.Please note only members are able to receiveadditional information.Have a property to list or sell? Direct Inquiresto Richard Martin rmartin@plsx.com or access www.plsx.com for more info.MarketAlert is published twice weekly throughfax and email and is a sister product to PLS’A&D Transactions, Prospects & Properties,Capital Markets & QuickPrice. All registeredtrade products of PLS.All Standard Disclaimers & Seller Rights Apply. Email: ListingMgr@plsx.comBuyers or Sellers No Longer Interested In Receiving Midstream News Can Opt Out By Calling Toll-free: 866-501-8500Email: jgreenwald@plsx.com.

© Copyright 2009 by PLS, Inc.Federal copyright law prohibits unauthorizedreproduction by any means and imposes finesup to $100,000 for violations.

MIDSTREAMNEWS

Friday, May 29, 2009 MIDSTREAMNEWS15

WantedAnonymous buyer seeks:Gulf Coast &Permian Basin Assets

For more info contact: Richard MartinAt PLS: (713) 650-1212

OFFSHORE GULF OF MEXICOGULF OF MEXICO OFFERING3-Fields.DEEPWATER FIELD DEVELOPMENTMirage, Morgus, & Telemark FieldsFloating Production Facility: ATP TitanDevelop Mirage/Morgus: ImmediatelyTelemark Development: 2010 GOM Export Lines Have Been Installed. PROJECT100% Working Interest Available.SEEKING JOINT VENTURE PARTNERSInitial Production Set For Late 2009.Max Production: ~32 MBOED In 2011Est Total Development Cost: ~$460 MMDATA ROOMS OPENED MID-MARCH

DV 6209

FOR SALE - EQUIPMENTDRILLING RIG FOR SALEDrill Rig For Sale.NATIONAL 370 MECHANICAL RIGCan Drill Down To 10,000 Ft.2- 630 HP 440 KW Marathon Generators.2-CAT 3406C Engines.Compound 280,000 Lbs w/ 8 Lines.AGENT HAS ADDITIONAL DATA

E 5415RIG

DRILLING RIG FOR SALEMobile Bock 861 - Platform C. UnManned.Water Depth: 54 Ft.Tripod Wellhead Deck.Facilities Can Flow: 17,000 MCFD RIGTotal Fluids: 1,900 BarrelsProcessing Equipment Incl Dehydration.Room For Compression.Crane: Nautilus Model 35 B4-501-Well Slot w/ Option To Add Slots.

E 6461RIG

WANTEDMIDSTREAM ASSETS WANTEDNeed Gathering; Pipelines; EquipmentUNITED STATES BASINSOPERATED & NonOperated WIIf You Have Midstream Asset For Sale— Please Contact rmartin@plsx.comPLS SCREENING DEALS FOR BUYER

W 6360G

MONEY SOURCE SEEKS DEALSROCKY MOUNTAINSDevelopment Drilling.Oilfield Construction. Stripping Plants.Compression Facilities. Gathering Lines.No Exploration, Land Banks Or Drilling Rigs.Preferred Size Range: $2.0-$30 MM

W 1820DV

www.englehartenergy.com

Divestments Made EasyPLS' Property Brokerage Arm‒ DivestPro Is The Leader In Small To Mid Size Market

ACQUISITIONS, DIVESTMENTS & TRADESDivestment Presentations, Detailed Grid Sheets, Physical & Virtual Datarooms, Vivid Mapping & much more...

Phone: 713.650.1212 • Fax: 713.658.1922 • www.plsx.com In Canada Contact: 403.294.1906

PLS services the small to mid size market(<$100 MM) seamlessly and efficientlythrough DivestPro Energy Partners.

Selling assets involves data collection; packagingand presentation; buyer leads; marketing and execution. PLS does it best!

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Selling a property, prospect, override or midstreamasset is the last chance to make money. Call PLS andmaximize your profit opportunity.

Contact PLS at 713.650.1212 for more details onhow our direct marketing arm can grab it, packageit, market it and sell it.

Since 1988, PLS has handled more than 1,200 projectsworth $2.0 billion in the U.S. and Canada‒

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