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Vaquero Midstream Reaches Major Construction Milestone on Natural Gas Processing Plant

THE WOODLANDS, TEXAS – November 5, 2015 – In a sign of major progress on its new gas gathering and processing project in the Southern Delaware Basin, Vaquero Midstream LLC has taken delivery of state-of-the-art cryogenic equipment, and is continuing installation on its plant and pipeline network.

Located in Pecos County in close proximity to the Waha Hub and the Lone Star NGL pipeline, the 200 million-cubic-feet-per-day (MMSCFD) processing facility is expected to open in May 2016 and is designed specifically for the new gas production seen in the Southern Delaware Basin. The company is also building an extensive gathering footprint in the area, with more than 100 miles of high-pressure pipeline in development. Tailored specifically to the needs of producers in the region, the new assets will provide a much-needed infrastructure solution.

“We studied in great depth the infrastructure challenges and major issues facing producers in the Permian and, in particular, in the Delaware Basin,” said Gary E. Conway, President and CEO of Vaquero Midstream. “We then designed a customer-centric solution for the entire basin that will optimize recoveries and allow companies to take their product to market more efficiently, cost-effectively and reliably.”

Concurrent with the facility construction, Vaquero has made substantial progress on its pipeline system, with the installation of 30-inch pipe underway. Vaquero’s residue gas pipeline to the Waha market will connect area producers to at least 12 residue pipelines and markets, in addition to NGL pipelines connecting to the Mont Belvieu market.

“Vaquero continues to build a basin solution in the Southern Delaware during this downturn in pricing as we are aware of the producer’s immediate need for an outlet for now and even more so in the near future. We are committed to stay on task to maintain our May 2016 in service date,” said Conway, who recently spoke at the 2015 Midstream Texas Conference in San Antonio, about the Delaware Basin’s needs and Vaquero’s response.

Vaquero’s senior leadership team collectively has a strong track record of success with major project installations, including operating fully integrated midstream natural gas and crude oil systems in some of the largest shale plays across America.

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