Kirkland & Ellis advised independent oil and natural gas company Bonanza Creek Energy, Inc. (NYSE: BCEI) (“Bonanza Creek”) in its gathering and processing agreement with midstream company Cureton Front Range LLC (“Cureton”). Following prior agreements with DCP Midstream Partners and Sterling Energy, this agreement will provide a third independent gas processor connected directly to Bonanza Creek’s Rocky Mountain Infrastructure gathering system to further manage the high line pressures currently impacting operators in the Denver Basin.
The agreement with Cureton is a 15-year gas gathering and processing contract under which Bonanza Creek has dedicated approximately 30,000 acres, or approximately 33 percent of its Wattenberg Field acreage, with no minimum volume commitment. Bonanza Creek expects to commence gathering service with Cureton late in the second quarter of 2018 and to commence processing service at Cureton’s 60 MMcf per day cryogenic gas plant in the second half of 2018. Read more about the agreement here.
The Kirkland team is led by corporate partner Jonathan Castelan and associates Bryce Silagy and Barrett Schitka.