Tall Oak Midstream II LLC is building out its Midcon System to better serve growing production from Oklahoma’s Northwest Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties, also known as the STACK.
“Production continues to accelerate in the Northwest STACK as producers develop liquids-rich STACK formations including the Meramac, the Osage and portions of the Cana Woodford,” said Tall Oak CEO Ryan Lewellyn. “The economics and long-term viability of the area are very strong, and we continue to see producers focus their commitment on the STACK.”
The expansion is to span seven counties in northwestern Oklahoma: Alfalfa, Woods, Major, Woodward, Dewey, Custer and Garfield. Dedications to Tall Oak in the region have reached about 500,000 net acres and are expected to grow, the company said.
“Multiple customers have made recent dedications to Tall Oak’s Midcon System, including several of the most active and prolific publicly traded producers in the STACK,” it said.
What is now the Midcon System was Caballo Energy’s Eagle Chief System, which Tall Oak acquired last July. Since the acquisition, Tall Oak has added more than 100 miles of natural gas gathering infrastructure and a new 50 MMcf/d compressor station.
The gathering system now includes more than 600 miles of pipeline and multiple compressor stations in addition to two processing plants. Tall Oak has two additional compressor stations and multiple pipelines under construction, with three additional compressor stations and another 100 miles of gathering pipelines planned for this year.
The system’s two processing plants -- the Carmen and Eagle Chief Natural Gas Processing Plants in Alfalfa County -- were also part of last year’s acquisition. Tall Oak has begun installing a 200 MMcf/d cryogenic processing train at the Carmen facility to bring its processing capacity in the STACK to 300 MMcf/d. The Carmen site is large enough to accommodate an additional 200 MMcf/d train (for a total of 500 MMcf/d) as producer demand warrants, Tall Oak said.
“We are leveraging our successful track record in the play to rapidly expand the capabilities of our Midcon system,” Lewellyn said. “Our team is dedicated to staying ahead of producer needs for high-quality gathering and processing infrastructure and securing premium markets for their products.”
Tall Oak recently completed a nonbinding open season for its TOM Midcon Transport residue gas pipeline project, which would serve Midcontinent producers with increased takeaway capacity. The operator is backed with $400 million in equity commitments from EnCap Flatrock Midstream.