Posted: Sep 20, 2013 4:38 AM
Updated: Sep 20, 2013 4:38 AM
FORT WORTH, Texas (AP) Fort Worth-based Approach Resources Inc. and a partner are selling a Southern Midland Basin oil pipeline to JP Energy Development LP for $210 million.
JP Energy is buying a 50-mile oil pipeline system that runs through Crockett and Reagan counties. JP Energy said Thursday that the deal will extend its reach into the Southern Midland Basin and diversify its business.
Approach will received $108 million in the deal. Its partner, Wildcat Midstream Holdings, will get the remaining $102 million. The sale is expected to close later this year.
Approach and JP Energy are also entering a revised crude oil purchase agreement under which JP Energy will buy and transport Approach's crude oil production from Crockett and Schleicher (SHLY'-ker) counties.