Breaking News

Tesco Trading Profit Beats Estimates as Chairman Prepares to Step Down
Tweet TWEET

Keyera to Acquire Deep Cut Gas Plant in West Central Alberta

CALGARY, March 17, 2014 /CNW/ - Keyera Corp. (TSX:KEY) ("Keyera") announced 
today it has entered into an agreement with Whitecap Resources Inc. 
("Whitecap") to acquire ownership interests in certain gas processing assets 
in west central Alberta, and in the associated oil and gas reserves.  Whitecap 
is initially acquiring these assets as part of a larger transaction.  Total 
cost to acquire the assets from Whitecap is approximately $113 million.  The 
acquisition is subject to typical closing conditions, and is expected to close 
on May 1, 2014. 
As part of this agreement, Keyera will acquire the following: 


        --  an 85% ownership interest in the West Pembina 6-28 gas plant
            (the "Cynthia gas plant");
        --  varying ownership interests in certain oil batteries,
            compressors and gathering pipelines associated with the Cynthia
            gas plant;
        --  a 4.6% ownership interest in the Bigoray gas plant, bringing
            Keyera's ownership in that facility to 100%; and
        --  Nisku reserves currently tied into the Cynthia and Bigoray gas
            plants.

"We are very pleased with the acquisition of the Cynthia gas plant and 
associated facilities, as well as increasing our ownership in the Bigoray gas 
plant to 100%," said David Smith, Keyera's President and Chief Operating 
Officer.  "The Cynthia gas plant is well positioned to provide deep cut 
processing solutions for new gas production from the numerous geological zones 
currently under development in the area.  We expect to interconnect the plant 
with other Keyera facilities in the area, in order to relieve processing 
constraints at those facilities and provide an enhanced level of service for 
all of our customers."

The Cynthia gas plant has a licensed capacity of 78 million cubic feet per 
day, and is located in west central Alberta near Keyera's Pembina North, 
Brazeau North and Bigoray gas plants.  The plant has a turbo expander capable 
of extracting a deep cut of ethane rich NGLs ("C2+ mix") from the raw gas 
stream.  The plant also has an acid gas injection facility that enables it to 
handle sour gas.  Current throughput is approximately 46 million cubic feet 
per day, and is largely associated gas and NGLs from Nisku oil production in 
the area. Upon closing, Keyera expects to become the operator of the facility. 
 A maintenance turnaround is scheduled at the plant for May 2014, at an 
estimated cost of approximately $10 million.

The oil batteries and compressors are integral to the delivery of natural gas 
and NGL production to the Cynthia gas plant, as are the gathering pipelines.

Along with the gathering and processing facilities, Keyera is acquiring 
reserves from the Nisku geological horizon, with the associated wells 
producing into the Cynthia and Bigoray gas plants.  Production from these 
wells averaged approximately 8,700 barrels of oil equivalent per day in 2013, 
of which about one third was crude oil and NGLs and two thirds natural gas.  
Because the reserves are in the late stages of their life cycle, Keyera 
currently estimates the production decline rate to be between 25% and 30% 
annually and has no plans to drill additional wells.  Rights of first refusal 
exist on portions of the reserves and certain surface assets associated with 
the production.

About Keyera

Keyera Corp. (TSX:KEY) operates one of the largest natural gas midstream 
businesses in Canada. Its business consists of natural gas gathering and 
processing as well as the processing, transportation, storage and marketing of 
NGLs, the production of iso-octane and crude oil midstream activities.

Keyera's gas processing plants and associated facilities are strategically 
located in the west central, foothills and deep basin natural gas production 
areas of the Western Canada Sedimentary Basin. Its NGL and crude oil 
infrastructure, including pipelines, terminals and processing and storage 
facilities, as well as its iso-octane facility, are located in Edmonton and 
Fort Saskatchewan, Alberta, a major North American NGL hub. Keyera markets 
propane, butane, condensate and iso-octane to customers in Canada and the 
United States.

Disclaimer

This document contains forward-looking statements based on Keyera's current 
expectations and assumptions relating to its business, the environment in 
which it operates, its future operations and the performance of its assets, 
including the newly acquired Cynthia gas plant and associated reserves and 
facilities. As these forward-looking statements depend upon future events, 
actual outcomes may differ materially depending on factors such as: the 
exercise of rights of first refusal; producer interest in the services being 
offered; future operating results of the assets; the ability of Keyera to 
execute each of their strategic initiatives in connection with the facilities 
and reserves to be acquired; changes in production decline rates; weather 
conditions; commodity supply/demand balances and prices; activities of 
producers, competitors, customers, business partners and others; overall 
economic conditions; access to capital and financing alternatives; operational 
risks associated with gas plant operation and oil and gas production; 
turnaround scheduling and costs; environmental liabilities; and potential 
delays or changes in producer development plans in the area; the legislative, 
regulatory and tax environment; and other known or unknown factors. There can 
be no assurance that the results or developments anticipated by Keyera will be 
realized or that it will have the expected consequences for or effects on 
Keyera.  The closing of this transaction is subject to clearance under 
Competition Act (Canada). There is no guarantee that such clearance will be 
received in a timely basis or at all.

For additional information on these and other factors, see Keyera's public 
filings on www.sedar.com. Unless otherwise required by applicable laws, Keyera 
does not intend to publicly update or revise forward-looking statements, 
whether as a result of new information, future events or otherwise.



SOURCE  Keyera Corp. 
For further information about Keyera, please visit our website 
atwww.keyera.com or contact: 
Keyera Corp. John Cobb, Vice-President, Investor Relations, or Julie Puddell, 
Manager, Investor Relations Email:ir@keyera.com; Telephone: 403.205.7670 / 
Toll Free: 888.699.4853 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/March2014/17/c5389.html 
CO: Keyera Corp.
ST: Alberta
NI: OIL  
-0- Mar/17/2014 11:35 GMT
 
 
Press spacebar to pause and continue. Press esc to stop.