Taproot Energy Partners LLC said Monday it has expanded the acreage dedicated to its crude oil and water pipelines in Colorado’s Denver-Julesburg (DJ) Basin in a deal with Mallard Exploration.
Denver-based Taproot said subsidiary Taproot Rockies Midstream LLC would provide crude oil and produced water gathering and transportation services for Mallard in the basin’s northeast extension in exchange for a long-term dedication of 60,000 acres.
Taproot’s existing Baja system and an extension it announced last year to serve Bonanza Creek Energy Inc.’s crude oil production include more than 110 miles of crude oil, produced water and freshwater pipelines. The company said Mallard’s position is near acreage held by Bison Oil & Gas, Verdad Resources LLC and Bonanza that is already dedicated, making it a “natural bolt-on” for the midstream system.
The agreement increases Taproot’s total dedicated acreage to more than 200,000 gross acres.
While the DJ has grown in recent years, oil and gas production has at times been complicated by midstream constraints in the rural play. Over the last year, midstream operators have continued to increase acreage dedications, expand their systems and take larger stakes in projects.
COO Rod Donovan said Taproot is focused on creating value for its producer customers and continues to invest in “the growth of our assets during challenging times.”
The company was formed in May 2018 to pursue greenfield projects and acquisition opportunities in oil, natural gas and natural gas liquids. It has partnered with the Dallas-based private equity firm Energy Spectrum Capital.
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