News

Rangeland Midstream Canada Brings New Pump Station into Service

February 8, 2022
Rangeland Midstream Canada
  • The Headwater Pump Station accommodates fast-growing crude oil production and throughput on its Marten Hills Pipeline System

SUGAR LAND, Texas, and CALGARY, Alberta – Feb. 8, 2022 – Rangeland Midstream Canada, Ltd., (”Rangeland Canada”), a wholly owned subsidiary of Rangeland Energy III LLC, today announced its Headwater Pump Station was commissioned in January 2022. The new pump station, part of the Marten Hills Pipeline System in northern Alberta, is needed specifically to service the increasing volumes of crude oil from Headwater Exploration Inc. (TSX: HWX).

Rangeland Canada built and commissioned the new Headwater Pump Station to transport Headwater’s growing oil production volumes in the Marten Hills region. Headwater recently reported a successful exploration program targeting the Clearwater formation in Marten Hills, and its board of directors approved a capital budget increase to $145 million to allow for the drilling of new exploration prospects in 2022.

“In total, 120 new wells were drilled in the Marten Hills 450,000-acre area of mutual interest (“AMI”) in 2021,” said Rangeland Canada Vice President of Business Development Briton Speer. “Oil production continues to grow across the Marten Hills region. We stand ready to make additional capital investments in our pipeline system to support the growth of area producers in 2022 and beyond.”

The Marten Hills Pipeline System throughput has doubled since startup in July 2020, and the system is now operating at 80 percent of capacity. The Marten Hills Pipeline System spans approximately 85 kilometres (52.8 miles) across northern Alberta, terminating at an interconnect with Plains Midstream Canada’s Rainbow Pipeline System, which serves the Edmonton, Alberta, hub and refining market (system map here).

Rangeland Canada has long-term transportation agreements in place with three of the region’s largest crude oil producers. The agreements span a 450,000-acre AMI dedicated to the Marten Hills system.

The Marten Hills Pipeline System has been in service since mid-2020 with a perfect safety record.

About Rangeland Energy and Rangeland Midstream Canada
Headquartered in Sugar Land, Texas, Rangeland Energy was formed in 2009 to focus on developing, acquiring, owning and operating midstream infrastructure for crude oil, natural gas, natural gas liquids and other petroleum products. The company is focused on emerging hydrocarbon production areas across North America, with a current emphasis on the Gulf Coast and Canada. Rangeland Midstream Canada, Ltd., a subsidiary headquartered in Calgary, was formed in 2016 to serve oil and gas producers in western Canada with a full suite of midstream services including oil and gas gathering, processing, terminaling and transportation. The Rangeland Canada team has significant expertise in designing, constructing and operating midstream assets in the Western Canadian Sedimentary Basin. The Rangeland team represents more than 200 years of combined midstream experience and is backed by growth capital commitments from EnCap Flatrock Midstream. For more information, please visit www.rangelandenergy.com.

About EnCap Flatrock Midstream
EnCap Flatrock Midstream provides value-added growth capital to proven management teams focused on midstream infrastructure opportunities across North America. The firm was formed in 2008 by a partnership between EnCap Investments L.P. and Flatrock Energy Advisors, LLC. Based in San Antonio with offices in Oklahoma City and Houston, the firm manages investment commitments of nearly $9 billion from a broad group of prestigious institutional investors. EnCap Flatrock Midstream is currently making commitments to new management teams from EFM Fund IV, a $3.25 billion fund. For more information please visit www.efmidstream.com.

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