Outrigger Energy II LLC has commenced development of a tri-stream midstream system in Weld County, Colorado, the company said on April 12.
Outrigger’s system will include wellhead natural gas gathering, 60 million cubic feet per day cryogenic processing plant, field compressor stations, crude oil gathering, and produced water gathering.
Outrigger will construct, own and operate the system which is anchored by long-term acreage dedications from Mallard Exploration. Outrigger is also in advanced discussions with several other area producers and has formulated plans to expand the initial system. Outrigger has purchased a new cryogenic plant and has begun the permitting process with Weld County and the state of Colorado which will allow the system to be in service by early 2019.
The processing plant will deliver residue gas to Cheyenne Plains Pipeline, a 36-inch diameter line that offers abundant access to both the Cheyenne Hub and to Mid-Continent markets, providing price and delivery advantages over other pipeline choices. NGL will be delivered to the Overland Pass Pipeline operated by the Williams Companies Inc. (NYSE: WMB) and co-owned by ONEOK Inc. Multiple outlet opportunities exist for crude oil delivery, including Tallgrass’ Pony Express Pipeline system and NGL Energy’s Grand Mesa Pipeline system.
“The DJ Basin continues to be one of the most prolific oil and gas resource basins in the country and members of the Outrigger team have spent significant time building and operating midstream systems here in the past,” Dave Keanini, Outrigger’s CEO, said. “We couldn’t be more excited to return to the basin and provide a reliable, long-term midstream solution for area producers.”
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About 100 miles of high-pressure, 24-inch and 30-inch rich-gas pipeline will be built for Revolution, which will handle more than 440 million cubic feet per day of capacity.