ARM partners with Highbridge

Asset Risk Management (ARM) announced that ARM Midstream – a wholly owned subsidiary of ARM – is partnering with Highbridge Principal Strategies, LLC to build a cryogenic processing plant, natural gas gathering system, and crude oil gathering system in Oklahoma's STACK play. The project will provide area producers with the infrastructure and takeaway capacity required to grow production in a highly competitive environment. The initial capital investment for the Kingfisher Midstream Project is estimated at approximately US$200 million.

The systems

Plans for the Kingfisher Midstream system include more than 100 miles of low- and high-pressure gas gathering pipelines, more than 15 000 hp of compression, and a newly constructed cryogenic processing facility with initial processing capacity of 60 million ft3/d of gas. The system design is configured strategically to serve STACK producers in Kingfisher County, as well as Blaine, Logan, Garfield, and Canadian Counties via additional plant expansions, a high-pressure gathering backbone, and centralised low-pressure delivery points.

The Kingfisher Midstream Project will also include a crude oil gathering system that will provide producers with streamlined operations and superior pricing optionally. The crude gathering system will connect in-field production to Cushing, Oklahoma, and will also include truck loading facilities and storage for 50 000 bbls of crude oil.

What will it offer?

The newly constructed facilities will provide area producers with a much needed midstream infrastructure alternative and will connect the basin to the premier takeaway markets in the area. Additionally, producers will benefit from the deep marketing knowledge of the ARM team across natural gas, LNG and crude takeaway. ARM currently serves more than 100 producer clients across all basins in North America and has a full team of physical marketers across all hydrocarbon products. The project is anchored by a long-term commitment of approximately 100 000 gross acres dedicated to the Kingfisher Midstream System.

Comments on the partnership

"We're excited to partner with Highbridge to provide a long-term infrastructure and capacity solution for STACK-area producers through this project," said Zach Lee, ARM's Chief Executive Officer. "At ARM, marketing expertise informs every step of our project strategy – it is in our company's DNA. We excel at connecting the dots between midstream and downstream, offering producers a strategic approach that no other company can provide."

Taylor Tipton, President of ARM Midstream and ARM Energy Management added: "our company's deep knowledge of the physical markets informed our midstream development and will provide significant value for producers in the region. As the STACK develops, the takeaway capacity provided by the Kingfisher Midstream Project will give producers an edge in a highly competitive physical market."

Additional information

The Kingfisher Midstream Project is expected to commence gathering operations in Q4 2015 and the processing plant will be in service by Q1 2016. Planning for future system expansion is underway and updates will be shared as the project progresses.

ARM expects to open offices in Oklahoma City and Midland, Texas by the end of 2015.

Edited from various sources by Stephanie Roker

Published on 09/09/2015


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