IRVING, Texas, Feb. 23, 2016 /PRNewswire/ -- Paradigm Energy Partners, LLC ("Paradigm", the "Company") announced today that its wholly owned subsidiary, Paradigm Midstream Services – ND, LLC has successfully executed another substantial crude oil gathering agreement for Paradigm's Charlson Gathering System in the North Dakota Bakken Shale. Paradigm reached an agreement with XTO Energy Inc. ("XTO") to gather crude oil from XTO's Charlson Field in northern McKenzie County for delivery to the Keene Central Delivery Point ("Keene CDP"), Paradigm's 50/50 joint venture with Phillips 66 Partners LP (NYSE: PSXP) ("Phillips 66") near Johnson's Corner, ND. The significant agreement will further expand Paradigm's existing footprint in the Charlson area to approximately 70 miles of pipelines covering approximately 70,000 acres of production.
The 272 acre Keene CDP is the Commercial and Operational hub of the Paradigm system and provides producers multi-market delivery optionality via access to the Palermo Rail Terminal, Paradigm's joint venture with Phillips 66 located near Palermo, ND, the North Dakota Pipeline Company LLC Terminal located in Stanley, ND, several pipeline connections, as well as up to 1.2 MMBbl of storage. In addition to multi-market takeaway options, Paradigm's Gathering and Keene CDP assets offer Bakken producers flow assurance and premium netbacks.
"We are very pleased to have reached this agreement with XTO and look forward to adding their Charlson production to our gathering portfolio," said Troy Andrews, Chief Executive Officer of Paradigm. "This agreement is consistent with our long-term strategy of providing Bakken oil and gas producers with low cost gathering solutions and delivery optionality."
With a well-capitalized position, Paradigm continues to aggressively pursue growth opportunities. Cost efficient transportation, extensive market optionality, and flexible custom gathering, storage, and transport solutions has the Company well positioned to be the area's gatherer of choice.
Paradigm's Charlson Gathering System
The Charlson Gathering System gathers barrels from the Charlson Field of northern McKenzie County into the Charlson Extension pipeline, a 10" pipeline extending south to storage and take-away options at Paradigm's Keene CDP. The system has a capacity of up to 80,000 barrels of oil per day.
About Paradigm Energy Partners, LLC
Headquartered in Irving, TX, Paradigm is a full service midstream services company formed to develop and operate new oil and gas infrastructure and related facilities. With a focus on the development of midstream assets in the Bakken Shale in North Dakota and Eagle Ford Shale in South Texas, Paradigm's business philosophy is employing creative solutions for its customers and excellence in project execution. The senior management team consists of seasoned executives with a significant track record of value creation in the energy and midstream sectors. Please visit www.paradigmmidstream.com for additional information about Paradigm and its affiliates.
SOURCE Paradigm Energy Partners, LLC