Two Oklahoma City energy companies announced Thursday they had formed a partnership concerning their operations in eastern Oklahoma.
Valiant Midstream LLC announced it has entered into a long-term, fee-based natural gas gathering and processing agreement with Antioch Energy LLC. Antioch’s dedication of more than 275,000 gross acres brings Valiant Midstream’s total acreage commitments in the Arkoma Stack basin to 2.1 million. Antioch’s production will be gathered and processed at Valiant Midstream’s Stanberry Processing Complex, a cryogenic processing facility located in Coal County, Oklahoma.
Within the acreage dedicated to Valiant Midstream, Antioch expects to continue development of three production benches in the fast-growing Arkoma Stack – the Woodford, Mayes and Caney formations in eastern Oklahoma. Antioch owns over 24,000 net contiguous acres in the core of the Arkoma Stack and operates 60 wells. The net resource potential recoverable in Antioch’s position is approximately 2 trillion cubic feet equivalent, with an inventory of 500-plus drilling locations.
As part of Valiant Midstream’s long-term Arkoma Stack growth strategy, the company will add capacity to accommodate the Antioch dedication, as well as future customer capacity. The first 220 MMcf/d of cryogenic processing capacity will be available at the company’s Stanberry plant near Coalgate, Okla., in November 2018. Additional capacity will become available in late 2019 and beyond, either through an expansion of the Stanberry facility or at a future Valiant Midstream plant site located near Atwood, Okla.
“We are extremely pleased to partner with Antioch Energy as we build upon one of the finest midstream systems in the Arkoma Stack basin,” said Valiant Midstream President and CEO Brandon Webster. “With our scheduled enhancements and expansion plans, our system will ultimately span more than 160 miles, including a 60-mile trunk line running north to south through the core of the liquids-rich window of this highly active play, which will allow us to provide best-in-class processing for producers no matter the location of their acreage.”
“This transformative transaction creates significant value to our production and reserves by realizing outstanding liquids value,” said Antioch President Nathaniel Harding. “Valiant Midstream’s best-in-class system will provide Antioch with superior processing and access to optimum pricing.”
Antioch CEO Kevin Dunnington said. “Our partnership with Valiant Midstream reflects Antioch’s mission to create value across all three stacked resource plays in our delineated, contiguous, core operated position with a full-scale infrastructure solution.”
Valiant Midstream currently operates and is actively constructing a total of more than 160 miles of gathering pipeline in the Arkoma Stack basin; an additional 50 miles will be completed in northern Hughes County in 2019. In total, the company plans to add another 220 MMcf/d of processing capacity by 4Q 2019, bringing its total Arkoma Stack capacity to over 440 MMcf/d.
ABOUT VALIANT MIDSTREAM, LLC
Headquartered in Oklahoma City, Valiant Midstream is a private midstream energy company focused on providing innovation, energy and results to midstream customers in the Mid-Continent and across North America. Valiant Midstream’s full suite of midstream services include natural gas gathering, processing, treating and compression; crude oil gathering, storage and transportation; condensate stabilization/splitting; produced water gathering; and marketing services. Valiant Midstream is backed by an equity commitment from Tailwater Capital and Valiant Midstream’s founders, as well as a credit facility, bringing total financing capacity for Valiant Midstream companies to more than $400 million. For more information, visit www.valiantmidstream.com.
ABOUT ANTIOCH ENERGY, LLC
Antioch Energy is a private equity backed exploration and production company headquartered in Oklahoma City. The company is focused on midcontinent upstream development in fast-growing unconventional resources plays. Antioch is led by Kevin Dunnington, Nathaniel Harding, Keith Downing, David Fruit, Rob Underwood and Tyler Chastain, and is supported by Outfitter Energy Capital. For more information, please visit www.antioch.energy.