Corterra Energy and Canyon Creek Energy Sign Long-Term Contracts
OKLAHOMA CITY, Feb. 7, 2018 /PRNewswire/ — Connect Midstream LLC announced today it has commenced construction on a natural gas gathering system and cryogenic gas processing plant in the heart of the Arkoma Stack play in southeast Oklahoma. The system is expected to come online in multiple phases starting in the second quarter of 2018. It will benefit from long-term dedications of two prominent acreage holders in the region.
Connect will provide midstream services to multiple oil and gas producers targeting liquids-rich stacked pay zones, including the highly prolific Woodford formation. The initial system infrastructure will span Hughes, Coal and Atokacounties and portions of Pittsburg, Pontotoc and Seminole counties.
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 liquids-rich fairway with a gathering system consisting of 12-inch to 24-inch steel pipeline, five gas compression facilities and condensate stabilization. The processing plant will provide access to multiple residue gas pipelines and will offer Connect’s customers market flexibility, enhanced netbacks and assurance of flow. Connect expects an initial investment of $200 million to the Arkoma Stack and to increase its investment as producers’ needs develop across the basin.
“Providing best-in-class gas gathering and processing assets for producers in the Arkoma Stack was a day-one priority for Connect,” said Connect President and CEO Brandon Webster. “We stand ready to meet the infrastructure requirements of this stacked source rock basin and look forward to providing rapid response and flexible solutions to drive further investment in the area.”
Connect will provide gathering and processing services for anchor customers Corterra Energy LLC and Canyon Creek Energy – Arkoma LLC under long-term contracts. Combined, these companies have committed over 1.8 million gross acres within an area of mutual interest to the midstream project. Corterra and Canyon Creek currently control close to 500,000 gross acres across the re-emerging Arkoma Stack play.
“Canyon Creek and Corterra’s positions blanket a large portion of the liquids-rich window of the Arkoma Stack,” Webster said. “Both producers are clear basin leaders which hold premier acreage positions and have the right management teams and capital partners to execute their development strategies.”
ABOUT CONNECT MIDSTREAM, LLC
Headquartered in Oklahoma City, Connect Midstream is a private midstream energy company focused on providing innovation, energy and results to midstream customers in the Mid-Continent and across North America. Connect’s full suite of midstream services include natural gas gathering, processing, treating and compression; crude oil gathering, storage and transportation; condensate stabilization/splitting; produced water gathering; and marketing services. Connect Midstream is backed by an initial $150 million funding commitment from Tailwater Capital and Connect management. Tailwater expects to increase its commitment as Connect executes its growth strategy. For more information, please visit www.connectmidstream.com.
ABOUT CANYON CREEK ENERGY – ARKOMA, LLC
Canyon Creek Energy – Arkoma (CCEA) is a Tulsa, Oklahoma-based oil and natural gas company primarily focused on exploiting natural resources in Oklahoma. CCEA is managed as an affiliate of Canyon Creek Energy Operating LLC, which is led by President and CEO R. Luke Essman. CCEA is a joint venture partnership between CCEA management, private investors and Vortus Investment Advisors, headquartered in Fort Worth, Texas. For more information, please visit www.canyoncreekenergy.com.
ABOUT CORTERRA ENERGY, LLC
Founded in 2016 and led by industry veterans, Corterra Energy is an independent exploration and energy production company headquartered in Tulsa, Oklahoma, with operations in the Mid-Continent region of Oklahoma. Corterra Energy is partnered with private equity firm White Deer Energy, headquartered in New York, New York. Learn more by visiting www.corterraenergy.com.
Canyon Creek Energy – Arkoma
Connect Midstream LLC