Dallas, Texas (February 12, 2007)—Haddington Ventures, LLC and Inter-American Corporation announced today that they have formed a new midstream energy venture, IACX Energy LLC (IACX). Haddington Energy Partners III, LP, a fund managed by Haddington, has made an initial commitment of $10 million to the new venture.
IACX provides low-cost processing alternatives for upstream producers looking to unlock value in stranded, low-BTU gas reserves. Estimated to represent 23 percent of the proved domestic natural gas base, low-BTU reserves are methane deposits with unacceptable percentages of nitrogen and/or carbon dioxide. These inert contaminants can lower the combustibility or BTUs per cubic foot of gas to levels below that of typical pipeline specifications.
IACX builds, owns, and operates proprietary pressure swing adsorption processing assets that extract nitrogen and carbon dioxide from contaminated gas streams. IACX’s technology is especially notable because of its scalability, ease of mobility, and high hydrocarbon recoveries. IACX processing units operate at lower pressures (from 35 to 175 PSIG), at volumes between 300 thousand cubic feet per day to 10 million cubic feet per day and can remove quantities of associated nitrogen and carbon dioxide as high as 40 percent economically. These mobile processing units upgrade otherwise unmarketable natural gas to conventional sales line specifications at the wellhead.
"Our roots in the upstream exploration and production segment of the industry run deep, and we empathize with oil and gas producers faced with the problem of treating smaller reserves,” said M. Scott Sears, Chief Executive Officer. “I am proud of our world class engineering department that continually strives to achieve the highest standards in the industry and constantly searches for innovative ways to improve their processes in order to benefit our customers. As a result, our units provide high hydrocarbon recoveries, excellent on-stream time and mobility. I am also enthusiastic about our business development team, led by Jeremy Jordan of Dallas. Jeremy has been with us for a number of years and has been instrumental in the development of our novel approach to low-volume, mobile processing.”
“We are very happy to be a part of this exciting and innovative venture,” said Chris Jones, a Principal at Haddington Ventures. “IACX brings upstream knowledge and expertise to the midstream segment of the industry. We look forward to working closely with IACX as it builds and deploys its fleet of processing units to the benefit of natural gas operators across the country. With its knowledgeable management team at the helm, the IACX team has a refreshing understanding for the issues and hurdles facing domestic operators, especially in the development of low-BTU gas. Haddington has evaluated IACX’s technology, and we can proudly assert that it is sound, groundbreaking, and truly exciting. There should be many beneficiaries to IACX’s processing assets in multiple, mature basins across the country.”
Haddington Ventures, L.L.C. is a Houston-based private equity firm that provides capital to the energy industry, including midstream oil and natural gas companies and electric generation, transmission, and distribution companies, with a focus on natural gas storage, gathering and processing, and other midstream energy activities. Haddington has raised more than $320 million of capital since its formation in 1998. Among the participating investors in Haddington are large insurance companies, public and private pension groups, commercial banks and high net worth individuals. Haddington Energy Partners III, is a private equity fund managed by Haddington. Additional information on Haddington Ventures is available at www.hvllc.com.
IACX Energy LLC is a majority owned portfolio company of Haddington Energy Partners, III. IACX will maintain offices in Dallas and The Woodlands, Texas, and can be reached via website (www.iacx.com) or by phone 972-960-3210.