Permian briefs

CIG Logistics acquired Odessa rail terminal

CIG Logistics bought a 330-acre rail terminal in Odessa, Tex., from Flint Hills Resources although terms of the transaction, which closed Sept. 29, were not immediately available.

Union Pacific Railroad serves the terminal, a Permian logistics hub for crude oil and fracturing sand moved via rail and truck.

Crestwood builds out Delaware takeaway

Crestwood Equity Partners LP launched a nonbinding open season for its Delaware Takeaway crude pipeline system (Delta), a 164-mile crude and condensate pipeline header system. The open season was scheduled to close Dec. 7.

Plans call for the system to start at a terminal to be built by Crestwood near Orla, Tex. in Reeves County, with potential downstream connections to multiple interconnects shipping to markets, including El Paso, Midland, Cushing, Houston, and Corpus Christi.

Delta will batch multiple grades of crude and condensate, initially transporting more than 200,000 b/d. The project may be expanded based on results of the open season. Crestwood expects Delta to enter service second-quarter 2017.

Crestwood is also in exclusive negotiations with a large producer in the Delaware Permian basin to anchor a large three-stream gathering system spanning portions of Reeves, Loving, and Culberson Counties, Tex., aggregating crude and condensate at the Orla terminal.

The gathering system, involving 600 miles of pipeline, might provide condensate stabilization for Wolfcamp output.

Rangeland Energy forms midstream company

Rangeland Energy, Sugar Land, Tex., has received a $300 million equity commitment from EnCap Flatrock Midstream and formed Rangeland Energy III LLC "to pursue new midstream opportunities in resource plays across North America."

An existing entity, Rangeland Energy II LLC, will continue to focus on construction, operation, and expansion of its RIO System, which includes a rail-and-truck hub near Loving, NM, providing transportation of crude oil and condensate produced in the Delaware basin as well as inbound frac sand.

A related crude oil system, including a gathering hub near Mentone, Tex., and an 85,000-b/d pipeline between there and Midland, was under construction.

EnCap Flatrock Midstream and Rangeland founders provided equity financing for Rangeland Energy II and for the first Rangeland entity, which developed a system of crude oil pipelines and terminals in the Bakken play. Inergy Midstream LP, now Crestwood Midstream Partners LP, bought that company in 2012.

SandRidge acquires Pinon Gathering in West Texas

SandRidge Energy Inc., Oklahoma City, agreed to acquire Pinon Gathering Co. LLC, Houston, from EIG Global Energy Partners for $48 million cash and $78 million in senior secured notes due 2020. The deal was expected to close in the fourth quarter.

Pinon Gathering owns 370 miles of gathering lines supporting natural gas and carbon dioxide production from the company's Pinon field in West Texas.

The transaction meant SandRidge would eliminate minimum volume commitment payments of $40 million/year, forecast to continue until 2021, and additional contractual fees thereafter, as well as secure a strategic asset supporting its West Texas gas production.

Ajax buys Permian assets from W&T Offshore

Ajax Resources LLC, a new exploration and production company back by private equity firm Kelso & Co., agreed to acquire all interest in Yellow Rose field from W&T Offshore Inc. of Houston for $376 million.

Yellow Rose assets include 25,800 net acres in Andrews, Martin, Gaines, and Dawson counties in West Texas.

About 90% of the acreage is held by production with substantial infrastructure.

W&T reserved a 1-4% sliding scale overriding royalty interest in Yellow Rose.

XTO expands acreage in Midland basin

XTO Energy Inc. executed two agreements to obtain horizontal development rights in 48,000 acres in the core Midland basin. Terms of the transactions and the sellers were not disclosed.

The two agreements involve an acquisition and farm-in adjoining XTO's acreage in Martin and Midland counties of West Texas, providing rights to all intervals within the basin.

ExxonMobil Corp. subsidiary XTO will operate the acreage.

Chinese company to buy Permian basin property

A Chinese holding company signed a letter of intent to purchase Permian basin property for $1.3 billion through a limited liability partnership.

Yantai Xinchao Industry Co. filed a statement with the Shanghai Stock Exchange saying holdings in the West Texas counties of Howard and Borden will be bought from Tall City Exploration and Plymouth Petroleum, both with offices in Midland, Tex.

No confirmation was immediately available as of Oct. 26 from the US independent operators.

Yantai Xinchao said it had signed a letter of intent with Ningbo Dingliang Huitong Equity Investment Center.