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Valiant Midstream to build natural gas gathering system and processing plant in Oklahoma’s Arkoma Stack Play

Valiant Midstream LLC announced today it has commenced construction on a natural gas gathering system and cryogenic gas processing plant in the heart of the Arkoma Stack play in southeast Oklahoma. The system is expected to come online in multiple phases starting in the second quarter of 2018. It will benefit from long-term dedications of two prominent acreage holders in the region.

Valiant will provide midstream services to multiple oil and gas producers targeting liquids-rich stacked pay zones, including the highly prolific Woodford formation. The initial system infrastructure will span Hughes, Coal and Atoka counties and portions of Pittsburg, Pontotoc and Seminole counties.

The initial phase of the project will include the installation of a 200 MMCFD cryogenic processing plant and a high-pressure trunk line spanning through the basin’s liquids-rich fairway with a gathering system consisting of 12-inch to 24-inch steel pipeline, five gas compression facilities and condensate stabilization. The processing plant will provide access to multiple residue gas pipelines and will offer Valiant’s customers market flexibility, enhanced netbacks and assurance of flow. Valiant expects an initial investment of $200 million to the Arkoma Stack and to increase its investment as producers’ needs develop across the basin.

“Providing best-in-class gas gathering and processing assets for producers in the Arkoma Stack was a day-one priority for Valiant,” said Valiant President and CEO Brandon Webster. “We stand ready to meet the infrastructure requirements of this stacked source rock basin and look forward to providing rapid response and flexible solutions to drive further investment in the area.”

Valiant will provide gathering and processing services for anchor customers Corterra Energy LLC  and Canyon Creek Energy – Arkoma LLC under long-term contracts. Combined, these companies have committed over 1.8 million gross acres within an area of mutual interest to the midstream project. Corterra and Canyon Creek currently control close to 500,000 gross acres across the re-emerging Arkoma Stack play.

“Canyon Creek and Corterra’s positions blanket a large portion of the liquids-rich window of the Arkoma Stack,” Webster said. “Both producers are clear basin leaders which hold premier acreage positions and have the right management teams and capital partners to execute their development strategies.”

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