The Woodlands, Texas – December 29, 2015 – Tradition Midstream, LLC (“Tradition”) today announced that its subsidiary Shongaloo Midstream, LLC has executed a long-term, fee-based natural gas gathering agreement with a large acreage holder and natural gas producer in the Cotton Valley Sand trend in the Northern Louisiana Salt Basin. The producer has dedicated production from all existing and future wells drilled on approximately 55,000 net acres located in Louisiana’s Claiborne and Webster parishes.
Construction of the Shongaloo Gathering System is proceeding on schedule, with the first delivery of natural gas expected to commence at the end of December 2015. Currently, Shongaloo Midstream is operating more than 23 miles of gathering pipelines. Initially, the Shongaloo Gathering System will gather gas for producers targeting the liquids-rich Cotton Valley formations and provide access to natural gas processing services at third-party processing plants with residue gas and NGL connections to Texas Gas Transmission and the Black Lake Pipeline, respectively. Shongaloo Midstream expects to construct an additional 25 miles of gathering pipeline by the end of the third quarter of 2016.