Howard Energy Partners (Hep) Tuesday announced its signed a deal with an unnamed producer to construct, own and operate a new natural gas gathering system in Oklahoma’s Stack play, Kallanish Energy reports.
Hep will construct the gathering system to be capable of low- and high-pressure service and have an initial capacity of 110 million cubic feet per day (Mmcf/d).
The project will be anchored by fee-based, long-term acreage dedications totaling roughly 10,000 acres in Dewey and Custer counties in central Oklahoma.
“We are pleased to partner with a major operator to provide midstream services for their lean gas production,” said Mike Howard, Hep chairman and CEO.
The gathering system can be expanded to support multi-well pad development by Hep’s customer, as well as other producers in the area, according to the developer. The initial phase of the project is expected to be operational in the third quarter of this year.
This project is Hep’s entrance into a sixth oil and gas development region. The company also has assets serving the Texas Gulf Coast, the Eagle Ford in South Texas, the Permian Basin in West Texas, the Marcellus Shale in Pennsylvania, and Mexico via the Nueva Era Pipeline.
This post appeared first on Kallanish Energy News.