Tall Oak Midstream LLC announced that its subsidiary TOMPC LLC secured a $100 million senior credit facility, which can be expanded to $150 million. Capital One Securities Inc. and Compass Bank acted as joint lead arrangers and Amegy Bank, BancFirst and Bank of Oklahoma served as additional participants. Paul Hastings LLP provided legal counsel to Tall Oak, and Sidley Austin LLP served as counsel to the underwriters. The transaction closed on Oct. 15.
Tall Oak formed in early 2014 and is an independent midstream company focused on the Midcontinent. With $400 million in previous private equity commitments from EnCap Flatrock Midstream and Tall Oak’s founders, this credit facility brings the company’s total financing to more than half a billion dollars. Tall Oak will use the funds to support the buildout and expansion of its gas gathering and processing system in the Central Northern Oklahoma Woodford (CNOW) play.
Tall Oak also announced that it entered into a definitive, long-term agreement with Dorado E&P Partners LLC, under which Dorado will dedicate gas production from its 15,000-gross-acre position in Noble County, Okla., to Tall Oak’s CNOW System. Dorado’s CNOW acreage is within a 300,000-area in Noble, Payne and Logan counties. Production from any additional acreage Dorado acquires in the area will also be dedicated to Tall Oak’s CNOW System.
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