Enerstream Water Solutions, a nearly year-old startup energy company based in Oklahoma City has partnered with Dolese Bros. Co., creating what is likely the largest fresh water storage source for oil and gas drillers in northwest Oklahoma.
“I’m not aware of another fresh water solution in the Oklahoma market, the SCOOP or the STACK that comes near this site’s on-site volume,” said Gabe Claypool, President and COO at Enerstream.
He referred to more than 100 acres of water located in the Dolese Bros. sandpit mining operation just south of Dover along highway U.S. 81 in Kingfisher County.
Enerstream intends on selling the water to frack drillers in the region, and there is a lot of water. The water also has a TDS well below the fresh water standard.
“Our current analysis, it’s over 8 million barrels of fresh water sitting in storage right now,” added Claypool. “We are just starting to market this asset to the operators and water transfer companies.”
He suggested in an interview with OK Energy Today that it could be closer to 12 million barrels of water stored in the sand pits on either side of the highway and adjacent to the Cimarron River.
Formed less than a year ago, Enerstream already has several other water rights in the STACK region in addition to the Dolese partnership. Other developments represent nearly 5,000 acres of water rights and are located throughout Blaine, Custer and Kingfisher counties.
Enerstream is currently constructing a frac pond west of Watonga close to the intersection of Highways 33, 58 and 281. This development is a 750,000 barrel frac pit located on the Jones Farm in Blaine County (Sec. 33, 16N 13W).
Claypool explained since their firm is relatively new and small, it relies heavily on partnerships like Dolese Bros. Co., as well as engineering, permitting and construction partners.
“We’re a small team but we’re growing. We’re currently evaluating a few acquisitions, so we’ll be adding headcount in parallel,” said Claypool.
The backers of Enerstream Water Solutions are a private equity-backed company based in Dallas, Texas. Many of the founders are native Oklahomans, including Marc Rowland, the 18-year Chesapeake CFO and oil industry veteran who now runs IOG Capital, a large non-op producer who provides drilling capital. Visit their website www.enerstreamwater.com to learn more about their operations.
Listen to some of the interview with Gabe Claypool by Jerry Bohnen.
