Tall Oak to build STACK system
Tall Oak Midstream II LLC said this week it will build natural gas and crude gathering infrastructure in the northwest part of the STACK play.
Tall Oak’s Midcon system will cover seven counties in northwest Oklahoma and reach about 500,000 net acres, with multiple customers making recent dedications to the system.
The announcement follows Tall Oak’s acquisition last year of Caballo Energy’s Eagle Chief system, which the company renamed and expanded, including more than 100 miles of natural gas gathering infrastructure and a new 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 an additional 100 miles of new, all-steel gathering pipelines planned for 2017.
Tall Oak expansions will increase processing capacity to approximately 300 million cubic feet per day, with the ability to expand further to 500 cubic feet per day.
“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,” Tall Oak President and CEO Ryan Lewellyn said in a statement. “The economics and long-term viability of the area are very strong, and we continue to see producers focus their commitment on the STACK. We are leveraging our successful track record in the play to rapidly expand the capabilities of our Midcon system.”
Oklahoma City-based Tall Oak is backed with $400 million in equity capital commitments from EnCap Flatrock Midstream.