Oklahoma-City based Tall Oak Midstream III, LLC announced on September 19 that it is building a natural gas gathering system in Oklahoma’s East STACK play, the next large project which is part of a series of investments the firm has dedicated to developing its prospects in the region.
Tall Oak III was formed two months ago with financial backing of up to $200 million from EnCap Flatrock Midstream and specializes in a variety of fields, including: the gathering of natural gas, the gathering and transportation of crude oil, compression, treating and processing, condensate and water handling, and product marketing solutions.
“The Tall Oak companies have quickly established a very strong record of rapidly developing gathering and processing solutions that offer reliable access to the best markets.” stated Tall Oak chief commercial officer Carlos Evans. “We remain focused on deploying the necessary capital and developing the infrastructure needed to stay ahead of our customers’ immediate and long-term needs.”
The planned system will consist of approximately 50 miles of 12 to 20-inch pipeline, two compression facilities, a 5,000 barrel per day (bpd) stabilizer, a slug catcher and condensate storage facilities. The firm also expressed its desire to add a cryogenic processing facility to the East STACK play and is currently conversing with producers in the area to determine an optimal location.
The Oklahoma East STACK play, or the Arkoma Woodford basin, has eight active rigs, all of which are primarily searching for natural gas, NewsOK notes. “The East STACK is an exciting play that lacks the infrastructure required to handle the emerging growth in production from rich, horizontal gas wells,” stated Evans.
The firm has invested $50 million into the project so far and plans to invest an additional $350 million according to CEO Ryan Lewellyn. “We have been talking to key potential customers in the area, and we liked what we heard,” Lewellyn told NewsOK. “There’s a need for pipeline infrastructure and processing capacity to accomplish the growth customers are expecting in the area.” The system is expected to be operational by the end of the year.
- Tim McNallyhttps://energiesmedia.com/author/tim-mcnally/
- Tim McNallyhttps://energiesmedia.com/author/tim-mcnally/
- Tim McNallyhttps://energiesmedia.com/author/tim-mcnally/
- Tim McNallyhttps://energiesmedia.com/author/tim-mcnally/
- Tim McNallyhttps://energiesmedia.com/author/tim-mcnally/
- Tim McNallyhttps://energiesmedia.com/author/tim-mcnally/
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