A new natural gas gathering system in southeastern Oklahoma is underway to serve producers working in a growing area of the myriad stacked reservoirs.
The system being built by private equity-backed Tall Oak Midstream III LLC, the East STACK, i.e., the Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties, is to include more than 50 miles of 12-inch and 20-inch diameter pipeline, two compression facilities, a 5,000 b/d stabilizer, an associated slug catcher and condensate storage facilities.
The East STACK system, spanning Hughes County and portions of Seminole, Pontotoc, Coal, Pittsburg, Atoka and McIntosh counties, could be in service by year’s end.
“The East STACK is an exciting play that lacks the infrastructure required to handle the emerging growth in production from rich, horizontal gas wells,” said Tall Oak Chief Commercial Officer Carlos Evans. “The Tall Oak companies have quickly established a very strong record of rapidly developing gathering and processing solutions that offer reliable access to the best markets.”
Tall Oak III expects to add a cryogenic processing facility to its East STACK system and is engaged in discussions with the area’s producers to determine the best size for the plant and a strategic location that ensures flexible access to premium residue and natural gas liquids markets.
Oklahoma City-based Tall Oak III was formed two months ago, backed by an initial equity commitment from the management and EnCap Flatrock Midstream for up to $200 million. Tall Oak Midstream II LLC already is working on expanding midstream options in the northwestern portion of the STACK, while Tall Oak Midstream I LLC was sold to EnLink last year.