Haddington Sells Bobcat Gas Storage Assets and Development Project to Spectra Energy

HOUSTON, July 15 /PRNewswire/ -- Haddington Ventures, L.L.C., announced today that it has entered into a definitive agreement to sell the Bobcat Gas Storage assets and development project to Spectra Energy Corp. (NYSE: SE) for $540 million.

The Bobcat Gas Storage Project was developed by Port Barre Investments, LLC, which is owned by members of management, Haddington Energy Partners III LP, a private equity fund managed by Haddington Ventures, L.L.C., and GE Energy Financial Services, the energy investing unit of GE (NYSE: GE). 

Located in Port Barre, Louisiana, the project began development in 2006 and entered commercial operation in November 2008.  Following the addition of a second cavern in 2009, the facility has working gas storage capacity of approximately 19 billion cubic feet.  

"The Bobcat project exemplifies Haddington's strategy to acquire, develop and eventually exit midstream energy projects," said Haddington Managing Director J. Chris Jones.  "We are very pleased to have reached an agreement with Spectra Energy, an experienced operator, who will continue the expansion of the assets as we had envisioned.  Having previously sold the Lodi Gas Storage project in California, our gas storage efforts are now focused on Magnum Gas Storage, a salt cavern storage project near Delta, Utah."

Completion of the transaction is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.  The transaction is expected to close before year-end 2010.

RBC Capital Markets served as the exclusive financial advisor to Port Barre Investments, LLC, on the sale of Bobcat and conducted the sale auction, which began in early May.  King & Spalding represented Bobcat in the sale as legal counsel.

Haddington Ventures, through its private equity funds, generally makes control-oriented investments in companies focused on gathering, separation, processing, treating, compression, storage, and transmission of energy.  Haddington principals developed many of the independent high-deliverability natural gas storage facilities in the U.S.  Haddington is unique in that it is the only midstream energy fund in which all principals have substantial direct operating company experience, both in energy-related acquisitions and in energy infrastructure development. 

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include, without limitation, the Company's plans, objectives, goals, strategies, future events, future bookings, revenue, or performance, capital expenditures, financing needs, plans, or intentions relating to acquisitions, business trends, executive compensation, and other information that is not historical information.   Actual results, performance, or achievements could differ materially from those expressed in, or implied by, the forward-looking statements.  The Company undertakes no obligation to update or revise forward-looking statements, which may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

SOURCE Haddington Ventures, L.L.C.