An energy company based in Colorado with ties to Divide County is looking at activity in the area with excitement, as well as with a desire to expand its capacity.

Sterling Energy Co., of Denver, is looking to expand in North Dakota through its Ambrose Gas Processing LLC. subsidiary in Divide County,

The Ambrose Gas Plant southwest of Ambrose has operated for nearly 25 years, taking in gas from oil wells located in the Fortuna area.

Art Smith, engineering manager for Sterling Energy, said Ambrose Gas Processing became a wholly owned subsidiary of its in 2008. Smith said Sterling Energy believes activity may be on the rise in the county in the not too distant future and is hoping to be a part of that growth.

"We think it's an incredible opportunity for us to expand," said Smith. Smith said the interest in expanding in North Dakota began after taking Ambrose under its wing as a subsidiary. He said they've been paying close attention to the number of permits being issued in the county, as well as its potential for more wells.

"We think the opportunity for additional wells is incredible," said Smith.

An increase in capacity would allow it to increase employment at the Ambrose plant to two full-time workers.

Smith said to expand, it has been in contact with and meeting with oil companies in the area to let them know about the Ambrose plant. He said getting more business from area companies is critical, as is increasing its capacity through an increase in equipment in the area.

The existing Ambrose Gas Plant produces 500,000 cubic feet of gas per day. The gas is transported through a pipeline to Hess Corporation in Tioga.

The Ambrose plant is known as a JT plant, short for Joule-Thomson. The Joule-Thomson Effect, also known as expansion refrigeration, is conducted at such a plant. This effect is the act of forcing natural gas through a valve, which drops the pressure and expands the gas, cooling it. Doing so allows for certain components of the gas to liquify and then it can be sold.

The material that is liquified is sent by truck to be sold.

Smith said the near-term goal for Sterling Energy is to increase capacity to 3 million cubic feet per day. He said with some rough and preliminary calculations, a plant with a capacity of up to 50 million cubic feet per day could be a possibility some day if all goes well.

One option that may be considered to help increase capacity is to use what is known as a refrigeration plant. Smith said this kind of plant enacts a refrigeration process using a coolant such as propane to cool the natural gas to an even lower temperature than with the Joule-Thomson Effect.

"You get more natural gas liquids that way. We have a refrigerator plant that's in Wyoming right now that we could move to Divide County," said Smith.

Smith said Sterling has been in contact with area companies, but right now he said it can't really quantify how much progress its made. He said it's watching how potential drilling activity is shaping up and is working to get involved with companies to increase capacity as the gas volumes begin to increase.

"We want to work with them. Ideally, we'll be able to produce and service short term and expand as we work more with them," said Smith.

Smith said the hope is for the expansion to take place in 2010.

Sterling Energy Company is centered in Denver, Colo. For more information on the company, visit www.sterlingenergy.us/.

Ambrose Gas Processing LLC is located in Ambrose. The telephone number is 701-982-3347.