May 29, 2015 [OPIS] - Tall Oak Midstream said on Thursday that it is constructing a new crude oil gathering, storage and transportation system designed to serve producers in Oklahoma's STACK play.
STACK is an acronym for the Sooner Trend, the Anadarko Basin and Canadian and Kingfisher counties in Oklahoma. The STACK play sits northwest of Oklahoma City and targets the Woodford and Mississippian-age shales.
Tall Oak is already gathering and processing natural gas on its STACK System for multiple customers. Anchored by a long-term agreement with Felix Energy, the crude oil system will connect to multiple downstream pipelines that provide direct access to the market center at Cushing, Okla.
Tall Oak expects to bring the system into service by the fourth quarter of 2015.
Tall Oak’s initial crude oil system will consist of a storage and truck unloading facility east of Okarche, Okla., in the center of the STACK play, and a 20-mile pipeline that will provide connection to multiple downstream markets.
Ultimately, Tall Oak expects to construct a 210-mile gathering system that will provide wellhead service. To serve customers while the gathering system is under construction, Tall Oak has contracted for a fleet of dedicated trucks that will deliver crude oil from the wellhead to the terminal.
The terminal will have an unloading capacity of 16,000 b/d and storage capacity of 20,000 bbl with plans to expand to 70,000 bbl.
