Blueknight Announces North Extension to the Pecos River Pipeline and Open Season

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Blueknight Announces North Extension to the Pecos River Pipeline and Open Season

OKLAHOMA CITY--(BUSINESS WIRE)-- Blueknight Energy Partners, L.P. (NAS: BKEP) (NAS: BKEPP) ("BKEP" or the "Partnership"), a midstream energy company providing integrated services for companies engaged in the production, distribution and marketing of crude oil, asphalt and other petroleum products, announced today it will launch an open season on March 4, 2013 to solicit shipper commitments to transport crude oil from southern New Mexico to Crane, Texas. Interested customers must submit binding commitments by April 12, 2013.


Southeastern New Mexico and Culberson and Reeves Counties in Texas represent emerging crude oil production areas that are underserved by pipeline capacity. The proposed 95 mile extension will connect to BKEP's previously announced Pecos River Pipeline, which is expected to commence operation in the second quarter of 2013, and will provide shippers access to the Gulf Coast and Midland markets. Depending on the strength of response from producers and shippers to the open season, the north extension's crude transportation capacity could reach up to 100,000 barrels per day and would be in service by the first quarter of 2015.

BKEP entered into an agreement with Advantage Pipeline, L.L.C. ("Advantage") to acquire approximately 30% ownership in a 70 mile crude oil pipeline to be constructed between Pecos and Crane, Texas. The Pecos River Pipeline will enable west Texas producers to deliver crude oil to Gulf Coast markets through a pipeline connection at Crane, Texas. BKEP will operate the pipeline under a long-term agreement with Advantage.

"The Pecos River Pipeline extension establishes a critical link to the attractive Gulf Coast market hubs for producers and shippers actively drilling in the area," commented Mark Hurley, BKEP's chief executive officer. "The proposed 95 mile extension will afford shippers and producers in the rapidly developing production area of New Mexico and around Pecos, Texas a similar opportunity to efficiently and affordably move their crude to markets where they can optimize the price."

For customer inquiries regarding the open season, please contact Jake Everett at (832) 331-2201 or jeverett@bkep.com. More information about the open season will be available on March 4th on the BKEP website at http://www.bkep.com.

Forward-Looking Statements

This release may include forward-looking statements. Statements included in this release that are not historical facts are forward-looking statements. Such forward-looking statements are subject to various risks and uncertainties. These risks and uncertainties include, among other things, uncertainties relating to the Partnership's future cash flows and operations, the Partnership's ability to pay future distributions, future market conditions, current and future governmental regulation, future taxation and other factors discussed in the Partnership's filings with the Securities and Exchange Commission. If any of these risks or uncertainties materializes, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. The Partnership undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

About Blueknight Energy Partners, L.P.

BKEP owns and operates a diversified portfolio of complementary midstream energy assets consisting of approximately 7.8 million barrels of crude oil storage located in Oklahoma and Texas, approximately 6.6 million barrels of which are located at the Cushing Oklahoma Interchange, approximately 1,289 miles of crude oil pipeline located primarily in Oklahoma and Texas, approximately 280 crude oil transportation and oilfield services vehicles deployed in Kansas, Colorado, New Mexico, Oklahoma and Texas and approximately 7.2 million barrels of combined asphalt product and residual fuel oil storage located at 44 terminals in 22 states. BKEP provides integrated services for companies engaged in the production, distribution and marketing of crude oil, asphalt and other petroleum products. BKEP is headquartered in Oklahoma City, Oklahoma. For more information, visit the Partnership's web site at www.bkep.com.



BKEP
Investor Relations, 918-237-4032
investor@bkep.com
or
Media Contact:
Brent Gooden, 405-715-3232 or 405-818-1900

KEYWORDS:   United States  North America  New Mexico  Oklahoma  Texas

INDUSTRY KEYWORDS:

The article Blueknight Announces North Extension to the Pecos River Pipeline and Open Season originally appeared on Fool.com.

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