Copano Energy Announces Long-Term Agreement With GeoSouthern in the Eagle Ford Shale and Fractionation Expansion at its Houston Central Complex

HOUSTON, Nov. 3, 2010 /PRNewswire/ -- Copano Energy, L.L.C. (Nasdaq: CPNO) announced today the signing of a long-term, fee-based agreement to provide GeoSouthern Energy Corporation, one of the first producers to have success in the NGL-rich region of the northern Eagle Ford Shale, with gathering, compression, processing and fractionation services for its Eagle Ford Shale production from a substantial acreage position in DeWitt County, Texas.  Copano will gather gas into its recently completed 36-mile, 24-inch DK Pipeline in DeWitt and Karnes Counties and will provide fully integrated services for both natural gas and natural gas liquids at its Houston Central Complex located in Colorado County, Texas.

Copano also announced plans to expand its Houston Central Complex fractionation facilities and its downstream NGL product handling facilities to accommodate producer demand in the rapidly developing Eagle Ford Shale. The fractionation expansion will double Copano's current capacity to 44,000 barrels per day. Anticipated capital spending for the fractionation and related product pipelines expansions is approximately $60 million, with an expected in-service date in September 2011.

"We are pleased to have been selected as GeoSouthern's midstream provider," said R. Bruce Northcutt, President and Chief Executive Officer of Copano Energy. "We believe that the capabilities and location of our Houston Central Complex, combined with our newly completed DK Pipeline, enable us to offer enhanced access to natural gas and NGL market alternatives for GeoSouthern and other Eagle Ford Shale producers."

Houston-based Copano Energy, L.L.C. (NASDAQ: CPNO) is a midstream natural gas company with operations in Oklahoma, Texas, Wyoming and Louisiana. Its assets include approximately 6,400 miles of active natural gas gathering and transmission pipelines, 250 miles of NGL pipelines and eight natural gas processing plants, with over one Bcf per day of combined processing capacity and 22,000 barrels per day of fractionation capacity. For more information, please visit www.copanoenergy.com.

This press release includes "forward-looking statements," as defined by the Securities and Exchange Commission. Statements that address activities or events that Copano believes will or may occur in the future are forward-looking statements. These statements include, but are not limited to, statements about future producer activity and Copano's total distributable cash flow and distribution coverage. These statements are based on management's experience and perception of historical trends, current conditions, expected future developments and other factors management believes are reasonable. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the following risks and uncertainties, many of which are beyond Copano's control: price volatility and market demand for natural gas and natural gas liquids; Copano's ability to continue to obtain new sources of natural gas supply and retain its key customers; the impact on volumes, and resulting cash flow, of technological, economic and other uncertainties inherent in estimating future production, producers' ability to drill and successfully complete and attach new natural gas supplies, the availability of downstream transportation systems and other facilities for natural gas and NGLs, and higher construction costs or project delays due to inflation, limited availability of required resources or the effects of environmental, legal or other uncertainties; general economic conditions; the effects of government regulations and policies; and other financial, operational and legal risks and uncertainties detailed from time to time in Copano's filings with the Securities and Exchange Commission.

SOURCE Copano Energy, L.L.C.