Tall Oak Midstream to construct natgas gathering system in Oklahoma

OKLAHOMA CITY — Tall Oak Midstream III, LLC announced that the company will construct a natural gas gathering system in southeast Oklahoma’s East STACK play. Producers working in the East STACK are developing multiple stacked pay zones, including the Woodford, Caney and Mayes formations. The system will span Hughes County and portions of Seminole, Pontotoc, Coal, Pittsburg, Atoka and McIntosh counties.

Initially, Tall Oak III’s East STACK system will consist of more than 50 mi of 12-in. to 20-in. pipeline, two compression facilities, a 5,000-bpd stabilizer, an associated slug catcher and condensate storage facilities. The system is expected to come into service by year-end. Tall Oak III expects to add a cryogenic processing facility to its East STACK system and is engaged in discussions with the area’s producers to determine the best size for the plant and a strategic location that ensures flexible access to premium residue and NGL markets.

The announcement comes just two months after the formation of Tall Oak III, which is backed by an initial equity commitment of up to $200 MM from EnCap Flatrock Midstream and the Tall Oak III management team. Tall Oak Midstream II, LLC continues to focus on operating and expanding its midstream assets in the Northwest STACK play. Tall Oak Midstream I was sold to EnLink in January 2016.

• Most Read
• Most Commented