Tall Oak Midstream has announced that it will build a new crude oil gathering, storage and transportation system to serve producers in Oklahoma’s STACK play.
The system will connect to multiple downstream pipelines that provide direct access to the market centre at Cushing, Oklahoma. It is expected to be brought into service by the fourth quarter of 2015.
Tall Oak is already gathering and processing natural gas on its STACK system for several different customers. STACK is an acronym for the Sooner Trend, the Anadarko Basin and Oklahoma’s Canadian and Kingfisher counties. It targets the Woodford and Mississippian-age shales.
Ryan Lewellyn, president and CEO, says: ‘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.
‘Our existing operations and commitment to customer service have had an outstanding response from producers across the STACK.’
The initial system will have a storage and truck unloading facility east of Okarche, Oklahoma, and a 20-mile pipeline that will provide connection to multiple downstream market. It is envisaged that there will eventually be a 210-mile gathering system that will provide wellhead service.
While the gathering system is being built, a fleet of trucks will deliver crude oil from the wellhead to the terminal. The terminal will have a storage capacity of 20,000 barrels with plans to expand to 70,000 barrels.