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Briefs -- Asset Risk Management, Magnum Hunter Resources

Asset Risk Management (ARM), through ARM Midstream, and Highbridge Principal Strategies LLC are developing a natural gas gathering and processing system to serve producers in Oklahoma's Stack play. The Kingfisher Midstream Project is expected to have an initial cost of $200 million and will also offer crude oil services. Kingfisher is to include more than 100 miles of low- and high-pressure gathering pipelines, more than 15,000 hp of compression, and a cryogenic processing facility with initial capacity of 60 MMcf/d. It would serve producers in Kingfisher County, as well as in Blaine, Logan, Garfield and Canadian counties via additional plant expansions, a high-pressure gathering backbone, and centralized low-pressure delivery points. Kingfisher would also include a crude oil gathering system to connect in-field production to Cushing, OK, as well as offering truck-loading facilities and storage for 50,000 bbl of crude. Gathering operations are expected to begin during the fourth quarter, with the processing plant in service during the first quarter. Potential expansions are being planned. Recently, Southern Star Central Corp. and a unit of NextEra Energy Inc. proposed the Sooner Trails Pipeline to serve growing production from the Stack as well as the South Central Oklahoma Oil Province (SCOOP) (see Shale Daily,Aug. 20).

Magnum Hunter Resources Corp. is the latest exploration and production company to receive a delisting notice from the New York Stock Exchange (NYSE) (see Shale Daily,Aug. 28). NYSE sent the company notice late last month that its common stock was no longer in compliance with the market's listing standards because it had a 30-day average closing price of below $1/share. Magnum said that during the period in question its common stock had an average 30-day closing price of 99 cents/share. The company has roughly six months to regain compliance if its 30-day closing price reaches an average of at least $1/share. Magnum continues to face cash-flow problems. Last month, it announced a tentative $430 million joint venture agreement with a private equity fund to help it develop unproven Marcellus and Utica shale acreage (see Shale Daily,Aug. 11). That deal was the latest in a series of proposed liquidity events it's been working on to help jump-start its suspended drilling program in the Appalachian Basin. The company is also trying to sell its 46% stake in midstream subsidiary Eureka Hunter Holdings LLC for up to $600 million (see Shale Daily,June 25). 

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