Tall Oak Midstream LLC is constructing a new crude oil gathering, storage and transportation system designed to serve producers in Oklahoma’s STACK play.
Tall Oak is already gathering and processing natural gas on its STACK System for multiple customers. Anchored by a long-term agreement with Felix Energy LLC, the crude oil system will connect to multiple downstream pipelines that provide direct access to the market center at Cushing, Oklahoma. Tall Oak expects to bring the system into service by the fourth quarter of 2015.
“We are very excited to announce our crude system. It allows us to bring Tall Oak’s best-in-class service to both natural gas and crude oil producers. This expansion provides one-stop shopping and marketing flexibility to Felix Energy and many other customers we are working with in the STACK play,” said Tall Oak President and CEO Ryan D. Lewellyn in a May 28 joint statement. “Our existing operations and commitment to customer service have had an outstanding response from producers across the STACK. We are very pleased that our team’s hard work has resulted in an even greater ability to serve our customers.”
Tall Oak chief commercial officer Carlos P. Evans added that the company’s goal is “to help producers maximize their product value through market optionality and the operational benefits of crude gathering.”
Tall Oak’s initial crude oil system will consist of a storage and truck unloading facility east of Okarche, Oklahoma, in the center of the STACK play, and a 20-mile pipeline that will provide connection to multiple downstream markets.
Ultimately, Tall Oak expects to construct a 210-mile gathering system that will provide wellhead service. To serve customers while the gathering system is under construction, Tall Oak has contracted for a fleet of dedicated trucks that will deliver crude oil from the wellhead to the terminal. The terminal will have an unloading capacity of 16,000 barrels per day (bpd) and storage capacity of 20,000 barrels with plans to expand to 70,000 barrels.
STACK is an acronym for the Sooner Trend, the Anadarko Basin and Oklahoma’s Canadian and Kingfisher counties. The STACK play sits northwest of Oklahoma City and targets the Woodford and Mississippian-age shale formaions.
Based in Oklahoma City, Tall Oak Midstream and Tall Oak Midstream II are dedicated to bringing a fresh perspective to serving oil and gas producers with a full suite of midstream services. Core capabilities include natural gas gathering, compression, treating and processing; crude oil gathering and transportation; condensate and water handling; and product marketing solutions. Tall Oak is currently focused on building out midstream infrastructure in the Mid-Continent. A map of current operations may be found here.
Denver-based private exploration and production company Felix Energy is a leading operator in the STACK play with an active development program on approximately 80,000 net acres in the volatile oil core of the play.Tags: crude oil, Oklahoma, STACK Play, Tall Oak Midstream