MIDLAND, Texas--(BUSINESS WIRE)--Oryx Midstream Services, LLC announced today that its operating subsidiary, Oryx Southern Delaware Oil Gathering and Transport LLC (collectively, “Oryx”), has launched an additional binding open season to secure volume commitments and/or acreage dedications to support the extension of the Oryx Trans Permian pipeline system (“OTP”), an extensive crude oil gathering and transportation system to serve the liquids-rich southern Delaware Basin in Texas. The binding open season commenced today, May 18, 2016 at 8 a.m. CDT and is scheduled to conclude at 5 p.m. CDT on June 17, 2016.
The proposed extension is currently supported by two producers that operate approximately 50,000 acres in Reeves and Ward counties. It will consist of approximately 120 miles of new pipeline and will connect to Oryx’s existing OTP gathering, transportation and storage system. A map can be found here. Construction will begin this month and the system is scheduled for completion early in the fourth quarter of 2016. Upon completion of the extended system, the OTP system will include more than 350 miles of oil pipeline, supported by more than 230,000 dedicated acres.
“We are pleased to launch this extension of the OTP system, the third phase of gathering supply associated with our OTP project. This extension allows us to connect our customers in the western portion of our project area to multiple takeaway options, providing the flexibility and market opportunities they need to maximize the value of their production,” said Brett Wiggs, Oryx Midstream Services’ chief executive officer. “Despite the current market conditions, we have seen significant need for gathering capacity and more efficient transportation logistics in our project area. The Delaware Basin has some of the most compelling economics of any rock in the lower 48 and we look forward to a continued build out of our midstream infrastructure to meet our customers’ needs.”
Oryx Trans Permian Pipeline System
In addition to the low-pressure gathering and transportation assets, the OTP system includes approximately 112 miles of 16-inch transmission pipeline spanning portions of Reeves, Ward, Pecos, Crane, Upton and Midland counties. It provides access to two major interconnects, an active connection into Magellan’s Longhorn Pipeline near Crane, Texas, and a future connection into Enterprise’s Midland Terminal scheduled for completion in August 2016.
The OTP system also includes three storage terminals near the Texas towns of Pecos, Crane and Midland, with 150,000 barrels of leased or owned storage capacity currently in service. Oryx will expand the system’s storage capacity to more than 390,000 barrels with additional tankage in Reeves, Ward and Crane Counties.
Open Season Information
The binding open season process provides potential shippers with the opportunity to make volume commitments or acreage dedications to the OTP system by executing long-term gathering and transportation contracts with Oryx. Shippers that elect to make long-term commitments to the OTP system during the open season will receive firm transportation service for their committed volumes.
Open Season documents can be found at Oryx’s website http://www.oryxmidstream.com/customer-center. Additional requests should be directed to Oryx’s chief financial officer and vice president of business development, Karl Pfluger at (432) 253-7767 or firstname.lastname@example.org. All binding commitments must be received by 5 p.m. CDT on June 17, 2016.
About Oryx Midstream Services, LLC
Midland-based Oryx Midstream is focused on developing midstream infrastructure in the Permian Basin in New Mexico and Texas. Led by an experienced team with more than 200 years of experience in the oil and gas industry, Oryx is dedicated to providing producers with solutions and flexibility through a full suite of midstream services. Oryx is supported by a consortium of capital providers including Quantum Energy Partners, Post Oak Energy Capital, Wells Fargo Energy Capital, local Midland investors and others who collectively have contributed significant capital to the venture. For more information visit www.oryxmidstream.com.
About Quantum Energy Partners
Quantum Energy Partners is a leading provider of private equity capital to the global energy industry, having managed together with its affiliates more than $10.5 billion in equity commitments since inception. For more information on Quantum, please visit www.quantumep.com. For investor relations, please contact Michael Dalton at (713) 452-2000.
About Post Oak Energy Capital
Post Oak, which was established in 2006, is an energy-focused private equity firm based in Houston. Its management team has executive management experience and a broad network in the energy business as well as significant expertise in private equity investments, operations, development, finance, acquisitions and divestitures. The firm pursues private equity investments primarily in the upstream sector of the oil and gas industry in North America and, to a lesser extent, in oil field services and related infrastructure. Post Oak works in close partnership with operating management teams to build businesses, accelerate growth and enhance shareholder value. Post Oak’s website is www.postoakenergy.com.