Roan makes deal with Blue Mountain to move oil out of Merge play

 

Oklahoma City’s Roan Resources has made a 10-year agreement with Houston’s Blue Mountain Midstream for gathering crude in Oklahoma’s Mergeplay between the STACK and the SCOOP plays.

The agreement covers 89,000 net acres. Blue Mountain plans to build a crude system with nearly 50 miles of gathering pipeline. The system will include two downstream interconnections to the Cushing hub market.

Construction is expected to begin immediately since Blue Mountain has existing lines in the area. It could be operational by the end of 2019. Once completed, the line will transport up to 60,000 barrels of crude a day. But the amount is expected to increase when more shippers sign on after an open season call.

 

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