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Tall Oak Midstream, LLC has announced that the company will build a natural gas gathering and processing system in the Central Northern Oklahoma Woodford (CNOW) play.

The system will serve multiple producers targeting the play海角吃瓜网檚 liquids-rich, stacked pay zones including the Mississippi Lime, Woodford Shale and Cleveland formations. Tall Oak海角吃瓜网檚 CNOW system will be anchored by a long-term acreage dedication from American Energy 海角吃瓜网� Woodford, LLC (AEW), an affiliate of American Energy Partners, LP (AELP).

The dedication spans an area of approximately one million acres that covers all previously undedicated acreage in Payne County and portions of Creek, Logan, Lincoln, Noble and Pawnee counties. In addition, AEW contributed its existing gathering lines in exchange for a minority interest in the Tall Oak CNOW system. AEW has an option to increase its non-operating interest up to 50% in the system.

海角吃瓜网淚t海角吃瓜网檚 a very exciting time to be working in the Mid-Continent,海角吃瓜网� said Tall Oak Chief Executive Officer Ryan Lewellyn. 海角吃瓜网淒rilling and production schedules continue to climb, and the long-term outlook for the CNOW play is very positive. We are excited about this opportunity and focused on providing AEW and other producers in the area a near-term solution with reliable access to multiple markets.海角吃瓜网�

Private equity support

Tall Oak is now supported by a total of US$ 400 million in private equity commitments from EnCap Flatrock Midstream (EnCap Flatrock) and Tall Oak海角吃瓜网檚 founders. EnCap Flatrock made an initial US$ 100 million commitment to Tall Oak in February and has since made additional commitments totalling US$ 300 million.

AEW is supported by a total of US$ 500 million in private equity commitments led by The Energy & Minerals Group (EMG), AEW海角吃瓜网檚 management team and others.

System specifics and market access

Tall Oak海角吃瓜网檚 initial CNOW System will include a 250 mile, low-pressure gas gathering system with multiple compression sites and a state-of-the-art cryogenic processing plant located in Payne County, Oklahoma. Tall Oak acquired 60 miles of existing gas gathering pipeline from AEW to establish the gathering footprint. Tall Oak海角吃瓜网檚 new cryogenic processing facility, known as the Battle Ridge Plant, is expected to be in service in December 2014. The plant will have an initial capacity of 75 million ft³/d and will include nitrogen rejection capabilities.

海角吃瓜网淭he Battle Ridge facility is large enough to accommodate planned expansions, which are expected to bring processing capacity to 300 MMcf/d as customer demand increases海角吃瓜网�, said Carlos Evans, Tall Oak Midstream海角吃瓜网檚 chief commercial officer. 海角吃瓜网淲e look forward to expanding our system and services to provide premium midstream solutions to producers in the CNOW area.海角吃瓜网�

Tall Oak海角吃瓜网檚 CNOW System will provide direct access to premium downstream markets including Southern Star Central Gas Pipeline and Enable Gas Transmission for residue gas.

Adapted from press release by

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