SemCAMS Signs Long-Term Processing Agreements and Announces New Duvernay Sour Gas Plant

CALGARY, Alberta, Dec. 21, 2017 -- SemCAMS, a subsidiary of SemGroup^® Corporation (NYSE:SEMG), today announced that it has signed 15-year gas processing agreements with Murphy Oil Company Ltd., a wholly owned subsidiary of Murphy Oil Corporation (NYSE:MUR) and Athabasca Oil Corporation (TSX:ATH). The agreements establish long-term relationships with two active operators developing the Duvernay and Montney in the Kaybob area. In order to support these customers, SemCAMS announced construction of a new sour gas plant (“Smoke Lake Gas Plant”) which is underpinned by the production outlined in the agreements. The plant will be located at 15-11-062-20W5M. 

The first stage of the Smoke Lake Gas Plant will have capacity to process 60 mmcf per day of sweet and sour Montney and Duvernay gas and is expected to be operational in the fourth quarter of 2019. The Smoke Lake Gas Plant has 90 percent of available capacity contracted and can be expanded as customer needs continue to grow. Discussions are continuing with other area producers who may require additional capacity.

The Smoke Lake Gas Plant will be interconnected with SemCAMS’ existing KA and K3 gas plants to leverage the sour processing and other ancillary services those facilities offer. SemCAMS’ network of sour gas processing facilities will allow for rerouting of gas during plant turnarounds, outages and curtailments thereby ensuring reliability and uptime for producer production. Following the completion of the Smoke Lake Gas Plant and the Wapiti Plant currently under construction, SemCAMS will have a combined 1.7 bcf per day of sour gas processing capacity licensed in Canada, further enhancing our foundation for future operational synergies and growth in this very active region of the Western Canadian Sedimentary Basin.

“The Smoke Lake Gas Plant further emphasizes SemCAMS’ commitment to growth and our focus on being the midstream processer of choice for area producers. Our long history of safe and reliable operation of sour gas plants, as well as the benefit of our existing infrastructure, give us a significant competitive advantage. This is another great milestone for SemCAMS, and we look forward to more in the near future as we execute on our growth strategy, working closely with Duvernay and Montney producers to expand our services to meet their midstream needs,” said David Gosse, SemCAMS’ Vice President and General Manager.

For additional information, please contact Greg Bosch, Director Business Development, at 403.536.3023.

About SemCAMS
SemCAMS U.L.C., a subsidiary of SemGroup® Corporation (NYSE:SEMG), is a gathering and processing business which provides midstream solutions for natural gas producers in Western Canada. SemCAMS is one of Alberta’s largest licensed sour gas processors with facilities located near Whitecourt and Fox Creek. The company also operates two sweet gas processing facilities in this region. SemCAMS is based in Calgary, Alberta, Canada. For more information, visit www.semcams.com.

About SemGroup
Based in Tulsa, Oklahoma, SemGroup^® Corporation (NYSE:SEMG) is a publicly traded midstream service company providing the energy industry the means to move products from the wellhead to the wholesale marketplace. SemGroup provides diversified services for end users and consumers of crude oil, natural gas, natural gas liquids, refined products, residual fuel oil and asphalt. Services include purchasing, selling, processing, transporting, terminalling and storing energy.

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Forward-Looking Statements
Certain matters contained in this Press Release include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995.

All statements, other than statements of historical fact, included in this Press Release may constitute forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include the risk factors discussed from time to time in each of SemGroup’s documents and reports filed with the SEC.

Readers are cautioned not to place undue reliance on any forward-looking statements contained in this Press Release, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements.

Contacts:

Investor Relations:
Alisa Perkins
918-524-8081
[email protected]

Media:
Tom Droege
918-524-8560
[email protected]