Leviathan Gas Pipeline Partners Secures $32 Million Credit Facility for Offshore Projects

Leviathan Gas Pipeline Partners, a publicly owned limited partnership, has announced that its subsidiary, Flextrend Development Company, has secured a $32 million credit facility from a syndicate of bank lenders led by Chemical Bank. The funds will be used to finance the development of offshore projects, including the Phar Lap, Spend A Buck, and Spectacular Bid projects, located in Viosca Knoll Block 817, offshore Louisiana. The partnership expects to complete the final loan documentation later this week and anticipates spudding the initial well at the Phar Lap project within the same timeframe.

Key Takeaways:

• Leviathan Gas Pipeline Partners has secured a $32 million credit facility from a syndicate of bank lenders, led by Chemical Bank, to fund the development of its offshore projects.
• The partnership's subsidiary, Flextrend Development Company, will use the funds to fulfill its development obligations for the Phar Lap, Spend A Buck, and Spectacular Bid projects, located in Viosca Knoll Block 817, offshore Louisiana.
• Flextrend Development Company has the option to retain up to 50% of the working interest in each of the properties by forgiving its right to recover an equal percentage of the investment and development costs.
• The partnership operates or has interests in nine pipeline systems located offshore Louisiana and Texas, which currently gather approximately 2.5 billion cubic feet of natural gas per day.
• The initial well at Viosca Knoll Block 817 is expected to take approximately 30 days to drill and evaluate.

Statistics:

• $32 million: the amount of the credit facility secured by Leviathan Gas Pipeline Partners.
• 9: the number of pipeline systems operated or owned by Leviathan Gas Pipeline Partners, located offshore Louisiana and Texas.
• 2.5 billion cubic feet per day: the amount of natural gas gathered by the pipeline systems operated or owned by Leviathan Gas Pipeline Partners.
• 50%: the percentage of the working interest in each of the properties that Flextrend Development Company has the option to retain.
• 30 days: the estimated duration of the initial well at Viosca Knoll Block 817.

Sources:

• PRNewswire, "Leviathan Gas Pipeline Partners, L.P. Announces $32 Million Credit Facility" (October 11, 1995).