Blueknight Energy Partners, L.P. (“BKEP” or the “Partnership”) (NASDAQ: BKEP) (NASDAQ:BKEPP), a midstream energy company focused on providing integrated services for companies engaged in the production, distribution and marketing of crude oil, asphalt and other petroleum products, today announced plans to construct a crude oil pipeline as part of a long-term transportation agreement with XTO Energy Inc., a subsidiary of ExxonMobil Corporation.
In connection with the agreement, BKEP will construct a 65-mile pipeline from southern Oklahoma to Wynnewood, Oklahoma, where it will intersect with an existing BKEP pipeline. The pipeline will transport committed XTO crude oil production from the Woodford Shale area in Southern Oklahoma to BKEP’s crude oil terminal in Cushing, Oklahoma.
“We’re pleased to have the opportunity to provide XTO with an efficient and reliable way to transport their crude oil production from the Woodford Shale to the market hub in Cushing, Oklahoma,” said J. Michael Cockrell, Blueknight Energy Partners’ president and chief operating officer. “The new pipeline and associated infrastructure represents a significant expansion of our Oklahoma mainline system and positions the company to pursue additional crude oil transportation opportunities throughout southern Oklahoma.”
BKEP expects construction of the new pipeline and associated enhancements to its Oklahoma mainline system to begin this quarter with completion targeted early-mid 2013 at an approximate total cost of $37 million.
About Blueknight Energy Partners, L.P.
BKEP owns and operates a diversified portfolio of complementary midstream energy assets consisting of approximately 7.8 million barrels of crude oil storage located in Oklahoma and Texas, approximately 6.6 million barrels of which are located at the Cushing Oklahoma Interchange, approximately 1,289 miles of crude oil pipeline located primarily in Oklahoma and Texas, approximately 280 crude oil transportation and oilfield services vehicles deployed in Kansas, Colorado, New Mexico, Oklahoma and Texas and approximately 7.2 million barrels of combined asphalt product and residual fuel oil storage located at 44 terminals in 22 states. BKEP provides integrated services for companies engaged in the production, distribution and marketing of crude oil, asphalt and other petroleum products. BKEP is based in Oklahoma City, Oklahoma and Tulsa, Oklahoma. For more information, visit the Partnership’s web site at www.bkep.com.
This press release contains forward-looking statements within the meaning of the federal securities laws. These statements are based on certain assumptions made by the Partnership based upon management's experience and perception of historical trends, current conditions, expected future developments and other factors the Partnership believes are appropriate in the circumstances. These statements include, but are not limited to, statements with respect to the benefits of the transportation agreement and pipeline and costs and timing for becoming operational for the project discussed above. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership, which may cause the Partnership's actual results to differ materially from those implied or expressed by the forward-looking statements. These risks include, but are not limited to, risks discussed in the Partnership's filings with the Securities and Exchange Commission. The Partnership has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Brent Gooden, 405-715-3232
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