Tall Oak Midstream LLC is constructing a new crude oil gathering, storage and transportation system serving producers in Oklahoma’s Stack play, which targets Woodford and Mississippian shales, the company said May 28.
Tall Oak is already gathering and processing natural gas on its Stack System for several customers, the company added. The new system’s 20-mile pipeline will connect to several downstream pipelines headed to Cushing, Okla. The system is scheduled to be in service by 2015’s fourth quarter.
The new system will have a storage and truck unloading facility east of Okarche, Okla.
The company plans to build a 210-mile gathering system that will provide wellhead service. Tall Oak contracted for a dedicated fleet of trucks to take crude from the wellhead to the terminal for customers while the system is being built.
The terminal will have an unloading capacity of 16,000 barrels per day (bbl/d) and storage capacity of 20Mbbl. Storage could expand to 70Mbbl.
The system is anchored by a long-term agreement with Felix Energy LLC, Tall Oak said.
“We are very excited to announce our crude system. It allows us to bring Tall Oak’s best-in-class service to both natural gas and crude oil producers. This expansion provides one-stop shopping and marketng flexibility to Felix Energy and many other customers we are working with in the Stack play,” said Ryan D. Lewellyn, president and CEO.
“Our existng operations and commitment to customer service have had an outstanding response from producers across the Stack. We are very pleased that our team’s hard work has resulted in an even greater ability to serve our customers. ”
Tall Oak Midstream LLC is based in Oklahoma City.
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