By San Antonio Business Journal

TEAK Midstream LLC has bought Texana Pipeline Co. LLC as part of a long-term strategy of supporting the development of the Eagle Ford Shale formation.

The Eagle Ford Shale is a geologic formation that extends east to west across South Texas and is becoming a leading source of oil and natural gas. Texana owns more than 325 miles of intrastate pipelines throughout 17 South and East Texas counties. Significant portions of Texanaâ¿¿s pipeline network are located in and around the Eagle Ford Shale.

TEAK Midstream provides natural gas gathering, transmission, treating, processing, compression, marketing and price risk-management services in gas-producing regions of the country. TEAK is based in Dallas.

Texana is a natural gas and natural gas liquid transportation company based in Corpus Christi. Financial terms of the transaction were not disclosed. The acquisition became effective on July 1, 2010.

⿿Texana⿿s gathering assets provide a strategic footprint for TEAK⿿s planned growth in the Eagle Ford Shale. Our solid financial position and industry relationships allow us to leverage Texana⿿s existing operations to accelerate growth and expand the services we offer customers in South and East Texas,⿝ says TEAK Co-Chief Executive Jim Wales. ⿿This acquisition is just one of many growth steps for TEAK.⿝

Seven Texana employees will join Dallas-based TEAK, including Texana founder Gayle W. Muench. He started Texana in 2007. Muench will serve as vice president of corporate development and will focus most of his efforts on executing TEAKâ¿¿s Eagle Ford Shale growth strategy. Muench will be based in the companyâ¿¿s new regional office in San Antonio.

Copyright 2010 American City Business Journals
Copyright 2010