ARM to build midstream infrastructure project in Oklahoma’s STACK play

Asset Risk Management (ARM) announced today that ARM Midstream, a wholly-owned subsidiary of ARM, is partnering with Highbridge Principal Strategies to build a cryogenic processing plant, natural gas gathering system, and crude oil gathering system in Oklahoma's STACK play.

The project will provide area producers with the infrastructure and takeaway capacity required to grow production in a highly-competitive environment, according to company officials.

The initial capital investment for the Kingfisher midstream project is estimated at approximately $200 million. 

Plans for the Kingfisher midstream system include more than 100 miles of low- and high-pressure gas gathering pipelines, more than 15,000 horsepower of compression, and a newly-constructed cryogenic processing facility with initial processing capacity of 60 million cubic feet/day of gas.

The system design is configured strategically to serve STACK producers in Kingfisher County, as well as Blaine, Logan, Garfield, and Canadian Counties via additional plant expansions, a high-pressure gathering backbone, and centralized low pressure delivery points.

The Kingfisher project will also include a crude oil gathering system that will provide producers with streamlined operations and superior pricing optionality, officials say. The crude gathering system will connect in-field production to Cushing, Oklahoma, and will also include truck loading facilities and storage for 50,000 bbl of crude oil.

The newly-constructed facilities will provide area producers with a much needed midstream infrastructure alternative and will connect the basin to the premier takeaway markets in the area. Additionally, producers will benefit from the deep marketing knowledge of the ARM team across natural gas, NGL and crude takeaway.

ARM currently serves more than 100 producer clients across all basins in North America and has a full team of physical marketers across all hydrocarbon products. The project is anchored by a long-term commitment of approximately 100,000 gross acres dedicated to the Kingfisher system.

"We're excited to partner with Highbridge to provide a long-term infrastructure and capacity solution for STACK-area producers through this project," said Zach Lee, ARM's chief executive officer. "At ARM, marketing expertise informs every step of our project strategy – it is in our company's DNA. We excel at connecting the dots between midstream and downstream, offering producers a strategic approach that no other company can provide."

"Our company's deep knowledge of the physical markets informed our midstream development and will provide significant value for producers in the region," added Taylor Tipton, president of ARM Midstream and ARM Energy Management. "As the STACK develops, the takeaway capacity provided by the Kingfisher project will give producers an edge in a highly-competitive physical market."

The Kingfisher project is expected to commence gathering operations in the fourth quarter of 2015, while the processing plant will be in service by the first quarter of 2016. Planning for future system expansion is already underway, company officials said.

ARM has corporate headquarters in Houston and offices in Pittsburgh, Denver, and Calgary. ARM expects to open offices in Oklahoma City and Midland, Texas, by the end of 2015.

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