Paradigm Midstream Announces New 70 Mile Pipeline Connecting McKenzie, Mountrail And Dunn Counties, N.D.

    Paradigm Midstream Announces New 70 Mile Pipeline Connecting McKenzie,
                      Mountrail And Dunn Counties, N.D.

New Pipeline Project Adds Up To 120,000 Barrels Per Day Takeaway Capacity for
Producers Throughout the Bakken Region, Scheduled to be On Line in 2014

PR Newswire

DALLAS, May 15, 2013

DALLAS, May 15, 2013 /PRNewswire/ --Paradigm Midstream, a Dallas-based
company, today announced the planned construction of a new 12-inch
multi-market pipeline in the heart of the Bakken Shale, a significant oil
formation in the Williston Basin underlying parts of Montana, North Dakota,
and Saskatchewan. Permitting is underway and construction is scheduled to
begin in late 2013, with the pipeline expected to come on line in 2014, adding
up to 120,000 barrels per day of crude oil take-away capacity from McKenzie
County.

Paradigm Midstream and Dakota Plains Holdings, Inc. ("Dakota Plains" and
"DAKP"), (OTCBB: DAKP) and joint-venture partner, Petroleum Transport
Solutions, LLC, an indirect wholly owned subsidiary of World Fuel Services
Corporation ("World Fuel Services"), (NYSE: INT) have entered into an
agreement that could lead to an exclusive pipeline transportation agreement to
export crude oil from McKenzie and Dunn counties. The route for the initial
pipeline will run from Johnson's Corner, located in McKenzie County, and tie
into the Pioneer crude oil transloading facility ("Pioneer") owned by Dakota
Plains and its partner located in south Mountrail County in New Town, North
Dakota. The pipeline will then run from the Pioneer facility to Enbridge's
Stanley Station located in north Mountrail County, where commercial agreements
are being finalized to tie into Enbridge's North Dakota pipeline system at
Stanley, which connects to Enbridge's Berthold Rail facility and additional
pipeline capacity downstream of Berthold, North Dakota.

"Logistical constraints and capacity issues associated with transporting crude
and NGLs have long been a detriment to pricing for producers throughout the
region," said Brian Manion, Paradigm Midstream Founder. "The Paradigm
Midstream pipeline connects the two most prolific areas of the Bakken and
offers the most optionality of any outbound infrastructure to date. This
pipeline will open up premium crude markets to producers with limited
optionality south of the Missouri River. In addition to the traditional
options located at Johnson's Corner, producers will also have access to
dedicated outbound markets, including two Class 1 Rail systems and Enbridge
Pipeline at Stanley and Berthold. With flexible multiple market access, this
is a game changer for producers throughout the Bakken Shale region."

The proposed pipeline offers producers flow assurance from McKenzie County and
flexible premium market access through connections to the Canadian Pacific
Line (Class 1 Rail) at the Pioneer facility and the Burlington Northern Santa
Fe's Line (Class 1 Rail) at the Enbridge Berthold Rail facility, and to
pipeline markets connected to the Enbridge pipeline system across the United
States. The proposed pipeline uniquely provides producers with access to East
Coast, West Coast and Gulf Coast rail markets, as well as multiple pipeline
and refinery markets at Clearbrook, the Upper Great Lakes, Cushing, the
Midwest and the Gulf Coast. In addition, Paradigm Midstream and Dakota Plains
are pursuing a new state-of-the-art NGL transloading solution at the Pioneer
facility.

Stonepeak Infrastructure Partners ("Stonepeak"), an independent investment
firm specializing in North American infrastructure projects, has partnered
with Paradigm Midstream to provide expertise, resources and capital for the
pipeline and associated Bakken projects.

Craig McKenzie, Chairman and CEO of Dakota Plains said, "The Paradigm
Midstream line supplying our Pioneer facility in New Town will provide the
McKenzie County oil producer multiple transportation and market options. With
Pioneer construction underway, we are expanding and transforming our New Town
facility into an energy hub for the Bakken. The expansion includes two loop
tracks each with the capacity to handle 120-car unit trains dedicated to crude
oil, 180,000 barrels of crude oil storage, and will also potentially utilize
existing rail infrastructure for the NGL's out-bound and in-bound commodities
like sand, pipe and diesel. We are very excited to pursue this opportunity
with Paradigm and see exceptional value in their gathering systems as we
strive to maximize the utilization of our 192-acre terminal in New Town."

About Paradigm Midstream, LLC

Paradigm Midstream, LLC ("Paradigm") is a wholly owned subsidiary of Valor
Petroleum, LLC, a privately held company based in Dallas,TX. focused on
midstream and exploration & production assets. Through its subsidiaries, Valor
Petroleum owns 400+ miles of pipeline in south Texas (Eagle Ford Shale) and
North Dakota. Paradigm is soley focused on developing midstream assets in the
Bakken Shale in North Dakota.

About Dakota Plains Holdings, Inc.

Dakota Plains Holdings, Inc. (OTC: DAKP) is a vertically-integrated, midstream
energy company, which competes through its 50/50 joint ventures with
affiliates of World Fuel Services Corporation (NYSE: INT) and Prairie Field
Services, LLC, to provide customers with crude oil off take services that
include marketing, transloading and trucking of crude oil and related
products. Direct and indirect company assets include a proprietary trucking
fleet, a transloading facility located in Mountrail County, North Dakota,
which is centrally located within the Bakken formation, and 1,100 railroad
tank cars.

About Stonepeak Infrastructure Partners

Stonepeak Infrastructure Partners is an independently owned, North American
focused infrastructure investment firm. Stonepeak targets lower risk
investments in the middle market,across the utilities, water, waste, energy,
power, renewables and transportation sectors. Stonepeak is based in New York.

Contacts: Jon McDonald        Ray Thomas
               Business Development             Crude Oil Marketing
               Paradigm Midstream           Dakota Plains & World Fuel
                                                    Services
               214-373-4305           281-556-2537
               jon@infinitymidstream.com rthomas@wfscorp.com

SOURCE Paradigm Midstream
 
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