Bison, Oklahoma's largest water infrastructure, logistics and solutions provider, on Oct. 17 said it has entered into a 15-year water gathering and disposal agreement with Chaparral Energy Inc. and its affiliates.
Under the agreement, Bison will exclusively manage all of Chaparral's produced water infrastructure and water hauling logistics, including any future acreage acquired or operated by Chaparral, within a roughly 1.9 million-acre dedicated area across Canadian, Grady and Blaine counties.
"We are excited to materially expand our relationship with Chaparral through this long-term water agreement,” said Bison CEO North Whipple. “As part of the arrangement, Bison will construct and manage all of Chaparral's water infrastructure and logistics within these three counties of the Stack and Merge for the next 15 years. We are proud to continue growing alongside our customers by helping them focus on their core businesses, realize cost savings, outsource their infrastructure expenses and achieve unmatched system reliability."
Devon Energy had been actively shopping the Permian Basin assets, and others in the Rockies, the past several months.
Analysts with Bernstein Research identified WPX Energy, Occidental Petroleum and Battalion Oil as top acquisition targets in the Permian Basin.
Production from Occidental Petroleum's Permian Basin unit rose 57% to 250,000 boe/d in the fourth quarter, boosted by its investments in the basin.