Tall Oak Midstream has secured a long-term, fee-based natural gas gathering and processing agreement with one of the largest acreage holders and natural gas producers in the Midcontinent’s Stack play.
The company has dedicated production from all existing and future wells drilled on 40,000 net acres located in Oklahoma’s Kingfisher and Blaine counties. The associated production will be gathered and processed at Tall Oak’s Chisholm Processing Complex now being constructed in Kingfisher County.
The first cryogenic processing train is expected to come into service shortly with initial capacity of 100 MMcf/d. To support the new dedication and increased demand from customers, Tall Oak has ordered a second cryogenic train to add 200 MMcf/d in processing capacity, bringing the amount to 300 MMcf/d.
Plans call for the second train to come online in mid-2016. Future expansions at the complex will allow for 700 MMcf/d in processing capacity as demand increases. Tall Oak operates over 100 miles of gathering pipelines in the STACK with plans to complete another 100 miles of pipe and two more compressor stations in 2015.
Also proceeding is the design and right-of-way acquisition for a crude oil gathering, storage and transportation system to serve the Stack play. Tall Oak expects to bring the system into service later this year. Ultimately over 200 miles of crude oil gathering pipelines and 150,000 barrels of storage will be constructed.