Caballo Energy to build cryo processing plant in Oklahoma

Caballo Energy LLC will build a new cryogenic gas processing plant to handle expanding natural gas production in the liquids-rich Mississippi lime and Cana Woodford shale plays.

The 60-MMcfd Carmen, Okla., gas plant will bring the company’s processing capacity in the region to about 100 MMcfd. The plant, to be in service by end of first-quarter 2013, will be built near Carmen on a 160-acre site that will accommodate construction of a second cryogenic plant.

Caballo Pres. and Chief Executive Officer Bob Firth said, “An additional plant could be up and running rapidly depending upon market conditions and demand.”

The new plant and Caballo’s existing Eagle Chief plant serve the company’s Eagle Chief system, which includes more than 600 miles of gas gathering pipelines and compression in Alfalfa, Blaine, Garfield, Major, and Woods counties.

Caballo delivers processed gas to the Oneok Gas Transportation and Panhandle Eastern Pipe Line. NGLs are delivered to the Oneok NGL Pipeline. The Eagle Chief system also includes saltwater disposal and crude oil gathering. Caballo acquired the Eagle Chief system in December 2011.

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