Valiant Midstream LLC announced on Aug. 23 it has entered into a long-term, fee-based natural gas gathering and processing agreement with Antioch Energy LLC.
Antioch's dedication of more than 275,000 gross acres brings Valiant Midstream's total acreage commitments in the Arkoma Stack basin to 2.1 million. Antioch's production will be gathered and processed at Valiant Midstream's Stanberry Processing Complex, a cryogenic processing facility located in Coal County, Oklahoma.
"We are extremely pleased to partner with Antioch Energy as we build upon one of the finest midstream systems in the Arkoma Stack basin," said Valiant Midstream President and CEO Brandon Webster. "With our scheduled enhancements and expansion plans, our system will ultimately span more than 160 miles, including a 60-mile trunk line running north to south through the core of the liquids-rich window of this highly active play, which will allow us to provide best-in-class processing for producers no matter the location of their acreage."
Within the acreage dedicated to Valiant Midstream, Antioch expects to continue development of three production benches in the fast-growing Arkoma Stack – the Woodford, Mayes and Caney formations in eastern Oklahoma. Antioch owns over 24,000 net contiguous acres in the core of the Arkoma Stack and operates 60 wells. The net resource potential recoverable in Antioch's position is approximately 2 trillion cubic feet equivalent, with an inventory of 500-plus drilling locations.
As part of Valiant Midstream's long-term Arkoma Stack growth strategy, the company will add capacity to accommodate the Antioch dedication, as well as future customer capacity. The first 220 MMcf/d of cryogenic processing capacity will be available at the company's Stanberry plant near Coalgate, Okla., in November 2018. Additional capacity will become available in late 2019 and beyond, either through an expansion of the Stanberry facility or at a future Valiant Midstream plant site located near Atwood, Okla.
"This transformative transaction creates significant value to our production and reserves by realizing outstanding liquids value," said Antioch President Nathaniel Harding. "Valiant Midstream's best-in-class system will provide Antioch with superior processing and access to optimum pricing."
Valiant Midstream currently operates and is actively constructing a total of more than 160 miles of gathering pipeline in the Arkoma Stack basin; an additional 50 miles will be completed in northern Hughes County in 2019. In total, the company plans to add another 220 MMcf/d of processing capacity by 4Q 2019, bringing its total Arkoma Stack capacity to over 440 MMcf/d.
"Our partnership with Valiant Midstream reflects Antioch's mission to create value across all three stacked resource plays in our delineated, contiguous, core operated position with a full-scale infrastructure solution," said Antioch CEO Kevin Dunnington.
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