The system will be known as the Cuervo Creek Pipeline and will cover more than 3,367 square km from Encinal south to Laredo. It will have an initial capacity of 150 MMcf/d and is expected to be in service in the fourth quarter of 2011.

Meritage expects to increase its rich gas gathering capacity in 2012.

Escondido Resources II will serve as the system’s anchor tenant and will also have firm capacity on Meritage’s existing 161 km Eagle Ford Escondido lean gas gathering system to move its Eagle Ford volumes.