Valiant Midstream LLC, Oklahoma City, has started construction on a natural gas gathering system and cryogenic gas processing plant in the heart of the Arkoma STACK play in southeast Oklahoma.
Scheduled for startup in multiple phases beginning in second-quarter 2018, initial system infrastructure will span Hughes, Coal, and Atoka counties, as well as portions of Pittsburg, Pontotoc, and Seminole counties, and will provide midstream services to multiple oil and gas producers targeting liquids-rich stacked pay zones, including the highly prolific Woodford formation, Valiant said.
The initial phase of the project will include the installation of a 200-MMcfd cryogenic processing plant and a high-pressure trunk line spanning through the basin's fairway with a gathering system consisting of 12-in. to 24-in. steel pipeline, five gas compression facilities, and condensate stabilization.
The processing plant will provide access to multiple residue gas pipelines and will offer Valiant's customers market flexibility, enhanced netbacks, and assurance of flow, the company said.
Under long-term contracts, Valiant will provide gathering and processing services for anchor customers Corterra Energy LLC and Canyon Creek Energy—Arkoma LLC (CCEA), both of Tulsa, which together have committed more than 1.8 million gross acres within an area of mutual interest to the midstream project.
Combined, Corterra and Canyon Creek currently control close to 500,000 gross acres across the reemerging Arkoma Stack play, according to Valiant.
Valiant, which plans an initial investment of $200 million to the Arkoma Stack, said it will increase its investment as producers' needs develop across the basin.
Contact Robert Brelsford at [email protected].