Located in Webb County, the Cuervo Creek Pipeline will cover nearly 1,300sq m from Encinal south to Laredo.
Escondido Resources II will act as an anchor tenant for gas gathering system, and will dedicate about 33,000 acres to Meritage including deep and shallow rights in the Eagle Ford, Escondido and Olmos formations.
The 60-mile system, having multiple downstream interconnects, enables Meritage customers to move rich gas to high value markets out of the multizone, rich gas developments taking place in the region, including the Eagle Ford shale.
The 16-inch Cuervo Creek Pipeline will have an initial capacity of 150mmcf/d and is expected to be online in the fourth quarter of this year.
The company intends to increase its rich gas gathering capacity in next year to accommodate the quickly developing shallow gas play.
US-based Escondido Resources II is engaged in the development of conventional and unconventional natural gas reserves in south Texas.
