Two Oklahoma City midstream companies have announced a business sale and purchase of holdings, including 253 miles of gas gathering pipeline in the state.
White Star Petroleum LLC sold its interest in the midstream gathering system to 4 AM Midstream LLC, a midstream company founded this year.
The assets are in Logan, Noble and Payne counties in the Mid-Continent region. It includes 253 miles of gas gathering lines as well as 26 miles of high pressure lines and 214 miles of crude oil gathering pipelines.
White Star and 4 AM Midstream also entered into crude and gas gathering agreements covering the dedication area with a fixed-fee structure for a 20-year term.
“The divestiture of these non-core assets strengthened White Star’s balance sheet, which provides the Company with additional flexibility to invest capital in its core upstream operations and continue to create value for its investors,” Elliot J. Chambers, White Star’s Chief Executive Officer commented.
White Star Petroleum, LLC is an independent oil and natural gas company focused on the acquisition, development, operation and production of unconventional oil and natural gas properties located in the Mid-Continent region in Oklahoma.