Tall Oak Midstream II LLC’s plan to grow its natural gas and crude gathering assets in Oklahoma’s Stack play will span seven counties and cover about 500,000 net acres.
Announced on April 26, the Midcon System buildout in Alfalfa, Woods, Major, Woodward, Dewey, Custer and Garfield counties boasts multiple customers and is backed by $400 million in equity capital from EnCap Flatrock Midstream.
The growth plan follows Tall Oak’s July 2016 acquisition of Caballo Energy’s Eagle Chief System, now known as the Midcon System. Since the acquisition, Tall Oak has added more than 100 miles of natural gas gathering infrastructure and a new compressor station capable of compressing 50 MMcf/d.
The gathering system now includes more than 600 miles of pipeline and multiple compressor stations in addition to two processing plants. Tall Oak currently has two additional compressor stations and multiple pipelines under construction, with three additional compressor stations and an additional 100 miles of new, all-steel gathering pipelines planned for 2017.
The system’s two processing plants—the Carmen and Eagle Chief Natural Gas Processing Plants in Alfalfa County—were also part of last year’s acquisition. Tall Oak has initiated the installation of a new, state-of-the-art 200 MMcf/d cryogenic processing train at the Carmen processing facility to bring its total processing capacity in the Stack to 300 MMcf/d. The Carmen site is large enough to accommodate an additional 200 MMcf/d train (for a total of 500 MMcf/d) as producer demand warrants.
“Production continues to accelerate in the Northwest Stack as producers develop liquids-rich Stack formations including the Meramac, the Osage and portions of the Cana Woodford,” said Tall Oak President and CEO Ryan Lewellyn. “The economics and long-term viability of the area are very strong, and we continue to see producers focus their commitment on the Stack. We are leveraging our successful track record in the play to rapidly expand the capabilities of our Midcon System. Our team is dedicated to staying ahead of producer needs for high-quality gathering and processing infrastructure and securing premium markets for their products.”
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