No purchase price was revealed, but Oklahoma City-based Bison has acquired more water infrastructure in the state. It announced the purchase of Gulfport Energy Corporation’s water infrastructure in the SCOOP.
The acquisition was made with an upfront payment and other contingent consideration based on the time, pace and magnitude of Gulfport’s future development program and water production levels, according to an announcement by Bison.
The purchase also included a 15-year agreement where Bison will manage all of Gulfport’s water gathering, recycling, storage, reuse, disposal, transportation, logistics and sourcing across Grady, Garvin and Stephens counties. The assets also include a multi-line water gathering and delivery system, 2.3 million barrels of storage capacity, 40,000 barrels a day of recycling capacity, 55,000 barrels per day of freshwater supply capacity, real property and a pending saltwater disposal permit.
“Today’s announcement is another major milestone for our company, which has grown exponentially throughout the year and now serves over 12 E&P customers dedicated to our infrastructure under long-term agreements,” said North Whipple, CEO of Bison.
Whipple indicated other companies bid on the same properties and infrastructure but Bison was eventually selected.
“We are proud to have been selected among the many other bidders in this highly competitive process and believe it is a testament to our proven track record of responsibly managing water infrastructure of any size, scale and scope across Oklahoma.”
It was in October 2019 that Bison entered into a 15-year agreement with Oklahoma City-based Chaparral Energy under which Bison will exclusively manage all of Chaparral’s produced water infrastructure and water hauling logistics. The agreement covers Chaparral’s operations across a 1.9 million-acre dedicated area in Canadian, Grady and Blaine counties.
