Tall Oak Midstream Expands Service In Oklahoma’s STACK Play With the Addition Of New Crude Oil Gathering and Transportation System
OKLAHOMA CITY – May 28, 2015 – Tall Oak Midstream, LLC (“Tall Oak”) announced today that the company is constructing a new crude oil gathering, storage and transportation system designed to serve producers in Oklahoma’s STACK play. Tall Oak is already gathering and processing natural gas on its STACK System for multiple customers. Anchored by a long-term agreement with Felix Energy, LLC, the crude oil system will connect to multiple downstream pipelines that provide direct access to the market center at Cushing, Oklahoma. Tall Oak expects to bring the system into service by the fourth quarter of 2015.
“We are very excited to announce our crude system. It allows us to bring Tall Oak’s best-in-class service to both natural gas and crude oil producers. This expansion provides one-stop shopping and marketing flexibility to Felix Energy and many other customers we are working with in the STACK play,” said Tall Oak President and CEO Ryan D. Lewellyn. “Our existing operations and commitment to customer service have had an outstanding response from producers across the STACK. We are very pleased that our team’s hard work has resulted in an even greater ability to serve our customers. ”
“We look forward to working with current and future customers to add crude services to their midstream plan. Our goal is to help producers maximize their product value through market optionality and the operational benefits of crude gathering,” added Tall Oak Chief Commercial Officer Carlos P. Evans.
Tall Oak’s initial crude oil system will consist of a storage and truck unloading facility east of Okarche, Oklahoma, in the center of the STACK play, and a 20-mile pipeline that will provide connection to multiple downstream markets. Ultimately, Tall Oak expects to construct a 210-mile gathering system that will provide wellhead service. To serve customers while the gathering system is under construction, Tall Oak has contracted for a fleet of dedicated trucks that will deliver crude oil from the wellhead to the terminal. The terminal will have an unloading capacity of 16,000 barrels per day and storage capacity of 20,000 barrels with plans to expand to 70,000 barrels.
STACK is an acronym for the Sooner Trend, the Anadarko Basin and Oklahoma’s Canadian and Kingfisher counties. The STACK play sits northwest of Oklahoma City and targets the Woodford and Mississippian-age shales.
About Tall Oak Midstream, LLC and Tall Oak Midstream II, LLC
Based in Oklahoma City, Tall Oak Midstream and Tall Oak Midstream II are innovative midstream companies led by their four founders: Ryan D. Lewellyn, CEO; Max J. Myers, CFO; Carlos P. Evans, CCO; and Lindel R. Larison, COO. The Tall Oak companies are dedicated to bringing a fresh perspective to serving oil and gas producers with a full suite of midstream services. Core capabilities include natural gas gathering, compression, treating and processing; crude oil gathering and transportation; condensate and water handling; and product marketing solutions. Tall Oak is currently focused on building out midstream infrastructure in the Mid-Continent. A map of current operations may be found here. Tall Oak II is pursuing midstream opportunities in other resource plays. www.talloakmidstream.com
About EnCap Flatrock Midstream
EnCap Flatrock Midstream provides value-added private equity 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. Based in San Antonio, Texas, and Edmond, Oklahoma, EnCap Flatrock is led by Managing Partners William D. Waldrip, Dennis F. Jaggi and William R. Lemmons Jr. The firm manages investment commitments of nearly $6 billion from a broad group of institutional investors. EnCap Flatrock is currently making commitments to new management teams from EFM Fund III, a $3 billion fund. www.efmidstream.com
About Felix Energy, LLC
Felix Energy is a Denver-based private exploration and production company focused on building large projects in onshore domestic basins. Felix is currently a leading operator in the STACK play in Oklahoma with an active development program on approximately 80,000 net acres in the volatile oil core of the play. The company’s leadership team has directed thousands of unconventional horizontal wells across numerous basins with the largest and best operators in the industry. Felix is active in all phases of the E&P value chain, including acquisition, exploration, development and production. www.felix-energy.com