Vaquero Midstream, a US-based company engaged in designing, building, and operating midstream infrastructure for oil and gas producers, has inked an agreement with its bank group to increase their revolving line of credit from $40m to $95m.
The additional funding will be invested to support the construction of a second 200MMSCFD cryogenic processing plant at the existing Caymus plant located in Pecos County of the Southern Delaware Basin in West Texas, US.
Vaquero said that its 30" and 24" Lariat rich-gas gathering header transverses northwest from the Caymus facility near Waha through the heart of some of the highest GOR (Gas-Oil Ratio) production in the Southern Delaware Basin.
More than 70 rigs are presently active within 10 miles of Vaquero's gathering line, which is driving volume growth for current customers as well as other potential new customers near the Vaquero rich-gas gathering header.
Once Caymus II plant construction is completed, Vaquero will be able to process 400 MMSCFD in service at the site, with further expansion capability to over 1 BSCFD. Construction is scheduled to be finished during the first quarter of 2018.
Vaquero Midstream principal William Davis said: “We are pleased to see the confidence our bank group has shown in the quality of our producer customers and their drilling plans.
“Our expectation is that this expansion and future projects should be financed with no additional equity capital, due to the level of cash flow we anticipate."