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Cardinal III to develop natural gas gathering and processing system

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Hydrocarbon Engineering,

Cardinal Midstream III, LLC is developing a new natural gas gathering and processing system, designed to serve producers working in Oklahoma’s SCOOP/STACK/Merge play. The system will be named the Iron Horse System. Located in the Anadarko Basin, the liquids-rich play targets multiple benches within the Woodford and Mississippian pay zones, with upside from additional horizons.

Construction of the gathering system is underway, and the company expects to commission the system’s first natural gas processing plant in 3Q18. The Iron Horse System is anchored by a long-term acreage dedication from Travis Peak Resources, LLC.

Cardinal III is also in discussions with other producers in the area to bring gas onto the Iron Horse System. Supported by a capital commitment of US$250 million from EnCap Flatrock Midstream, Cardinal III is the third company the Cardinal management team has formed in partnership with EnCap Flatrock Midstream and follows the previous successes of Cardinal Midstream I and Cardinal Midstream II.

“Our predecessor company, Cardinal I, began working in Oklahoma in 2010, so this is a homecoming for us. The drilling results and production growth in the SCOOP/STACK/Merge are very exciting. We are seeing more producers move additional rigs into this prolific area because of its compelling economics and improving results. We are committed to meeting operators’ growing needs across the play with a rapid build-out of our system,” said Cardinal Chairman and CEO Doug Dormer.

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Downstream news North America downstream news