Wolf Midstream Partners, a full-service midstream provider, announced Dec. 6 that it has executed a crude oil gathering and transportation agreement with an independent producer for approximately 25,000 dedicated gross leasehold acres in the prolific Permian Basin of West Texas.
To support the agreement, and other area producers as needed, Wolf plans to construct approximately 50 miles of new crude oil gathering pipelines with an expected capacity of 55,000 barrels per day. Additionally, Wolf has established a delivery point near Colorado City, Texas, and plans to construct terminal facilities, with interconnects into multiple downstream pipelines.
“We are excited about this partnership with a seasoned operator and look forward to building out this new system,” said Curtis Ewers, Wolf Midstream CEO. “The Wolf team has a long and successful history developing midstream solutions that provide producers with creative, reliable service. This new system will solidify our position in the Permian region, where we remain very focused on deploying the necessary capital and developing the infrastructure needed to address our customers’ long-term and immediate needs.”
Construction activities have begun and Wolf expects the new system to start service in second-quarter 2018.