Tall Oak Midstream Expands Natural Gas Gathering, Processing Footprint in Oklahoma’s STACK Play
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Tall Oak Midstream II, LLC has executed an aggressive growth plan to meet producers’ natural gas and crude gathering needs in Oklahoma’s Northwest STACK play. The buildout of Tall Oak’s Midcon System will span seven counties in northwest Oklahoma: Alfalfa, Woods, Major, Woodward, Dewey, Custer and Garfield. Acreage dedications to Tall Oak in the multicounty region have reached approximately 500,000 net acres and are expected to grow.
Multiple customers have made recent dedications to Tall Oak’s Midcon System, including several of the most active and prolific publicly traded producers in the STACK. Tall Oak is backed with $400 million in equity capital commitments from EnCap Flatrock Midstream.
“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. The economics and long-term viability of the area are very strong, and we continue to see producers focus their commitment on the STACK,” said Tall Oak President and CEO Ryan Lewellyn.
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,” added Lewellyn.
MIDCON SYSTEM DETAILS
Today’s news follows Tall Oak’s July 2016 acquisition of Caballo Energy’s Eagle Chief System, now known as Tall Oak’s 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, Oklahoma — 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. Furthermore, 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.
About Tall Oak Midstream II
Based in Oklahoma City, Tall Oak Midstream is an innovative midstream company led by its four founders: Ryan D. Lewellyn, CEO; Max J. Myers, CFO; Carlos P. Evans, CCO; and Lindel R. Larison, COO. Tall Oak is dedicated to bringing a fresh perspective to serving oil and gas producers with a full suite of midstream services. Core capabilities include natural gas gathering, compression, treating and processing; crude oil gathering and transportation; condensate and water handling; and product marketing solutions.
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