Oklahoma City-based Tall Oak Midstream III, LLC will construct a natural gas gathering system in southeast Oklahoma’s East STACK play, according to a company press release issued on Thursday. The system is expected to come into service before the end of 2017.
Producers working in the East STACK are developing multiple stacked pay zones, including the Woodford, Caney and Mayes formations. The system will span Hughes County and portions of Seminole, Pontotoc, Coal, Pittsburg, Atoka and McIntosh counties.
“The East STACK is an exciting play that lacks the infrastructure required to handle the emerging growth in production from rich, horizontal gas wells,” said Carlos Evans, chief commercial officer of the Tall Oak companies. “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. 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 system will initially consist of more than 50 miles of 12-inch to 20-inch pipeline, two compression facilities, a 5,000 bpd stabilizer, an associated slug catcher and condensate storage facilities.
Tall Oak III will also add a cryogenic processing facility to its East STACK system. The company is in discussions with the area’s producers to determine the best size for the plant and a strategic location that ensures flexible access to premium residue and NGL markets.
Tall Oak III was formed by an initial equity commitment of up to $200 million from EnCap Flatrock Midstream and the Tall Oak III management team. Tall Oak Midstream II, LLC will remain focused on operating and expanding its midstream assets in the Northwest STACK play. Tall Oak Midstream I was sold to EnLink in January 2016.