Oklahoma water infrastructure company Bison said Wednesday is buying Tapstone Energy LLC's produced water infrastructure in the Anadarko Basin for an undisclosed amount.
The infrastructure is in the northwestern part of the STACK, or Sooner Trend of the Anadarko Basin (mostly in Canadian and Kingfisher counties). Tapstone and Bison also inked a 15-year water gathering and disposal agreement and a 15-year dispatch services agreement.
Under the terms of the deal, Bison would manage all of the produced water infrastructure and hauling logistics, including any future acreage acquired or operated by Tapstone within a roughly 2.6 million-acre dedicated area across Blaine, Dewey, Major and Woodward counties.
The dispatch agreement would allow oil and gas operators to “lock in their water hauling costs at the bottom of the market, and outsource the management of trucking vendors, payment disputes and subcontractor credit risks,” said Bison CEO North Whipple. “We intend to roll out our dispatch services across Oklahoma, and early next year we plan to start expanding into new regions and markets.”
Earlier this year, Tapstone was the top bidder for an 80-acre parcel of land in Oklahoma at $226,000 in a lease sale held in March by the Bureau of Land Management.
The deal resembles another made in August when Oklahoma City-based Lagoon Water Solutions paid $85 million for part of Continental Resources Inc.'s oilfield water system serving Oklahoma’s busiest reservoirs, the STACK and the SCOOP, or South Central Oklahoma Oil Province.
The produced water market in the United States may reach 4 million barrels/day by 2025, according to report in July by Raymond James & Associates Inc. “U.S. oilfield water production today is already a whopping 50 million barrels/day,” Raymond James analysts said at the time. “Given that the U.S. only produces about 15 million bbl of petroleum liquids each day, you can see that oilfield water production outpaces oil production by more than 4-to-1 on a national basis. For scale, this amount of water could cover over 8,000 football fields with a foot of water, each and every day.”