Tall Oak Midstream III, LLC Announces Open Season for Its Arkoma Residue Capacity Pipeline Project

OKLAHOMA CITY–(BUSINESS WIRE)–Tall
Oak Midstream III, LLC (“Tall Oak”) announced today a non-binding
open season to secure prospective shippers for a proposed 80-mile
natural gas residue pipeline. The Arkoma Residue Capacity (“ARC”)
Pipeline will connect to both Tall Oak’s planned Panther Creek Natural
Gas Processing Plant (“Panther Creek Plant”) in Hughes County, Oklahoma,
and a planned receipt point off the Enable Gas Transmission line. The
ARC Pipeline will transport residue gas from these two receipt points to
multiple interconnects to the south near Bennington, Oklahoma, providing
producers and other shippers in Oklahoma’s burgeoning Arkoma STACK play
with downstream market optionality and the opportunity to maximize
producer netbacks. The planned receipt point off the Enable Gas
Transmission line also will alleviate capacity constraints for residue
gas from the STACK, SCOOP and Merge plays located in central and western
Oklahoma by providing this gas a path to Bennington.

The Panther Creek Plant will be a 200 MMcfd cryogenic natural gas
processing plant and is expected to come into service by the first
quarter of 2019. Planned interconnects from the Panther Creek Plant
already include Enable Oklahoma Intrastate Transmission, Enable Gas
Transmission and the Arkoma Connector Pipeline. Proposed interconnects
to the south located near Bennington include the Midcontinent Express
Pipeline, Gulf Crossing Pipeline Company and Natural Gas Pipeline
Company of America. Construction of the ARC Pipeline is projected to
begin in the second quarter of 2019, pending regulatory approval, with
an in-service target by the end of 2019.

The open season for the ARC Pipeline begins at 9:00 am Central Time on
Tuesday, March 6, 2018, and closes at 5:00 pm Central Time on Friday,
March 30, 2018. Tall Oak will seek Federal Energy Regulatory Commission
approval to build the pipeline. The purpose of the open season is to
ensure that the design of the ARC Pipeline will meet shipper needs.

“We are seeing a very rapid rise in production in this region and a
related increase in demand for takeaway capacity. The ARC Pipeline will
connect the Arkoma STACK with premium downstream markets,” said Tall Oak
Chief Commercial Officer Carlos Evans. “We are pleased to announce this
project to debottleneck existing pipeline routes and provide shippers
with the optionality they need to access multiple markets.”

Interested parties are encouraged to contact Tall Oak Midstream Director
of Commercial Development Blake Burger at [email protected]
or Manager of Gas Scheduling and Contract Administration Miranda Davis
at [email protected].
Mr. Burger and Ms. Davis may be reached at 405.888.5585. The open season
overview may be viewed here.

The ARC Pipeline expands Tall Oak’s previously announced Arkoma STACK
system, which serves more than 150,000 dedicated acres. The Arkoma STACK
system currently includes approximately 90 miles of gathering pipeline,
two compression facilities, a 5,000 bpd stabilizer, an associated slug
catcher and condensate storage facilities. In addition to the Panther
Creek Plant, Tall Oak expects to add 150 miles of gathering lines and
two additional compressor stations by the end of 2018.

About Tall Oak Midstream, LLC

Based in Oklahoma City, the Tall Oak companies are dedicated to bringing
a fresh perspective to serving oil and gas producers with a full suite
of midstream services. Core capabilities include natural gas gathering,
compression, treating, processing and transportation; crude oil
gathering and transportation; condensate and water handling; and product
marketing solutions. Tall Oak is supported by capital commitments from
EnCap Flatrock Midstream. Please visit www.talloakmidstream.com
for more information.

About EnCap Flatrock Midstream

EnCap Flatrock Midstream provides value-added growth capital to proven
management teams focused on midstream infrastructure opportunities
across North America. The firm was formed in 2008 by a partnership
between EnCap
Investments L.P. and Flatrock Energy Advisors. EnCap Flatrock is
based in San Antonio with offices in Oklahoma City and Houston. The firm
manages investment commitments of nearly $9 billion from a broad group
of institutional investors. EnCap Flatrock currently is making
commitments to new management teams from EFM Fund IV, a $3.25 billion
fund. Please visit www.efmidstream.com
for more information.

Contacts

TEN|10 Group, LLC
Casey Nikoloric
303.433.4397 x101 o
303.507.0510
c
[email protected]