Tall Oak Midstream LLC announced Jan. 6 that initial natural gas gathering operations are underway on the Tall Oak Stack System. The company’s new gas gathering and processing system is designed to serve producers in Oklahoma’s Stack play.

Tall Oak is already gathering gas on its Stack System for multiple customers. The company expects to commission the system’s first processing plant, named the Chisholm Plant, in the third quarter of 2015.

The Tall Oak Stack System serves producers targeting the Stack play’s liquids-rich pay zones including the Upper and Lower Mississippian Meramec, Osage, Woodford Shale and Hunton formations. The system will also have the capacity to serve production from the Woodford and Springer shale plays and other portions of the South Central Oklahoma Oil Province, known as the Scoop. Tall Oak’s Stack System is anchored by long-­‐term gathering and processing agreements with Felix Energy LLC and PayRock Energy LLC. Together, Felix and PayRock control more than 100,000 net acres in the Stack play. Both companies continue to expand their acreage positions and pursue aggressive regional development programs. Tall Oak is also in discussions with other producers in the area to bring gas onto the Stack System.

Tall Oak’s initial Stack System will consist of 150 miles of high- and low-pressure natural gas gathering pipeline, multiple compressor stations and the Chisholm Plant, a state-of-the-art cryogenic processing plant with the capacity to process 100 million cubic feet of natural gas per day (MMcf/d). Located in Kingfisher County, the Chisholm Plant site will be able to accommodate multiple expansions that could bring total processing capacity to 400 MMcf/d to serve expanding production.

Tall Oak is also building a natural gas gathering and processing system to serve producers in Oklahoma’s Central Northern Oklahoma Woodford play, known as the CNOW play. Tall Oak’s CNOW System consists of 250 miles of gas gathering pipeline and the Baele Ridge Plant, a 75 MMcf/d cryogenic processing facility with nitrogen rejection capabilities located in Payne County, Okla. Tall Oak expects to bring the plant into service at the end of this month.

Tall Oak was founded in February 2014. In the third quarter of 2015, just 18 months after its formation, Tall Oak’s total cryogenic processing capacity in the Midcontinent is expected reach 175 MMcf/d across two systems with a total of 400 miles of gathering pipeline. To support the CNOW and Stack systems, Tall Oak plans to open field offices in Payne and Kingfisher counties and expects to hire about 30 new employees.

The announcement follows recent news that Oklahoma City-based Tall Oak has secured a $100 million credit facility, which can be expanded to $150 million, bringing the company’s total financing to more than half a billion dollars. In addition to the credit facility, Tall Oak is supported by $400 million in private equity commitments from EnCap Flatrock Midstream and Tall Oak’s management team. Five banks participated in the credit facility with Capital One Securities Inc. and Compass Bank acting as joint lead arrangers and Amegy Bank, BancFirst and Bank of Oklahoma serving as additional participants.