Tall Oak Midstream LLC has entered into a long-term natural gas gathering and processing agreement with a large acreage holder and natural gas producer in the STACK play, Oklahoma, US.
The acreage holder will use all of its wells located in Oklahoma’s Kingfisher and Blaine countries as part of the fee-based arrangement. Production will then be processed at Tall Oak’s Chisholm Processing Complex in Kingfisher County.
The first cryogenic processing train is due to arrive at the Chisholm plant in September 2015 with an initial capacity of 100 million ft3/d and a second cryogenic processing train has been ordered and is expected to be available by 3Q16. The Chisholm Complex is anticipated to expand to allow for a total 700 million ft3/d in processing capacity. Tall Oak is currently operating more than 100 miles of gathering pipelines in the STACK play and has plans to complete an additional 100 miles of pipe and two more compressor stations this year.
Carlos Evans, Tall Oak Chief Commercial Officer, said: “This important agreement strengthens our position in the Mid-Continent, where we remain very focused on deploying the necessary capital and developing the infrastructure needed to stay ahead of our customers’ immediate and long-term needs”.
Tall Oak is also proceeding on the design and right of way acquisition for a crude oil gathering, storage and transportation system designed to serve producers in Oklahoma’s STACK play. The crude oil system will connect to multiple downstream pipelines that provide direct access to the market centre at Cushing, Oklahoma. Tall Oak expects to bring the system into service by the 4Q15. Tall Oak’s initial crude oil system will consist of a storage and truck-unloading facility east of Okarche, Oklahoma, in the center of the STACK play, and a 20-mile pipeline that will provide connections to multiple downstream markets.
Edited from press release by Callum O'Reilly
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/11082015/tall-oak-secures-large-acreage-dedication-in-the-stack-play-1129/