October 2, 2006 -- Calgary, Alberta -- SemCAMS announced today that it has signed an agreement with a consortium of Alberta producers (Grand Banks Energy Corporation, Delphi Energy Corp., Arsenal Energy Inc., among others) where SemCAMS will construct an 8-inch diameter, high-pressure, sour gas pipeline to service a new sour gas discovery in the Tower Creek area, north of Hinton Alberta. The line will run from the SemCAMS operated Obed-Gregg Lake gas gathering system to the Grand Banks et al Tower Crk 2-21-55-27 W5M well. The pipeline will be capable of transporting approximately 75,000 MCF per day of gas. The 18 kilometer pipeline will gather both sweet and sour natural gas from the area and deliver it to the SemCAMS operated Kaybob South Number 3 Gas Plant for processing.
Grand Banks Energy Corporation is a Calgary-based, publicly traded junior oil and gas exploration and production company. It is listed on the TSX venture exchange under the symbol "GBE". In early 2006, Grand Banks operated a joint venture for the drilling of a 4,900 meter exploration well called Grand Banks et al Tower Crk 2-21-55-27 W5M. The well was successfully drilled and tested, confirming a significant sour gas discovery in a Devonian aged Leduc pinnacle reef formation.
Delphi Energy is a Calgary-based company that explores, develops and produces oil and natural gas in Western Canada. The Company is managed by a proven technical team. Delphi trades on the Toronto Stock Exchange under the symbol DEE.
Arsenal Energy Inc. is an aggressive junior Calgary-based exploration and production company that has properties in Western Canada, North Dakota, USA and Egypt. Arsenal has an experienced management team and has grown rapidly through acquisitions and drilling. Arsenal common shares trade on the Toronto Stock Exchange under the symbol AEI and on the Frankfurt exchange under the symbol A1E.
SemCAMS, part of SemGroup, L.P., is a gathering and processing business which provides complete midstream solutions for natural gas producers in Western Canada. SemCAMS is based in Calgary, Alberta, Canada. SemGroup, L.P. is a privately held midstream company providing the energy industry means to move products from the wellhead to the wholesale marketplace. The company has five main energy stream business markets - crude oil, refined petroleum products, natural gas, natural gas liquids and asphalt - and servers them through its various subsidiaries in the United States, Canada, Mexico, the United Kingdom and Switzerland. For additional information, visit www.semgrouplp.com.
SemCAMS Contact
Darren Marine
President and Chief Executive Officer
403.536.3075