Gathering, cryo plant on tap for Oklahoma Woodford

June 25, 2014
Tall Oak Midstream LLC, Edmond, Okla., will build 250 miles of gas low-pressure gathering pipeline and a 75-MMcfd cryogenic processing plant in Payne County in the central northern Oklahoma Woodford play.

Tall Oak Midstream LLC, Edmond, Okla., will build 250 miles of gas low-pressure gathering pipeline and a 75-MMcfd cryogenic processing plant in Payne County in the central northern Oklahoma Woodford play.

The Battle Ridge gas plant is to start up at yearend with nitrogen-rejection capacity and will accommodate expansions to 300 MMcfd, according to Carlos Evans, Tall Oak Midstream’s chief commercial officer.

The pipeline will serve multiple producers in the play’s “liquids-rich, stacked pay zones,” including the Mississippi Lime, Woodford shale, and Cleveland formations, the company said. It also will provide direct access to downstream markets including Southern Star Central Gas Pipeline and Enable Gas Transmission for residue gas.

The system will be anchored by production American Energy–Woodford LLC, a unit of American Energy Partners LP, Oklahoma City. The coverage spans about 1 million acres of previously undedicated acreage in Payne County and portions of Creek, Logan, Lincoln, Noble, and Pawnee counties.

AEW contributed 60 miles existing gathering lines in exchange for a minority interest in the Tall Oak system with an option to increase its nonoperating interest up to 50% in the system, the company said.

Tall Oak is supported by $400 million in private equity commitments from EnCap Flatrock Midstream and Tall Oak’s founders, the company said. EnCap Flatrock made an initial $100 million commitment to Tall Oak in February and has since made additional commitments totaling $300 million.