Medallion Announces Successful Close of Binding Open Season for the Wolfcamp Connector and Reagan Gathering Extension Crude Oil Pipeline
IRVING, Texas--(BUSINESS WIRE)--Medallion Pipeline Company, LLC (“Medallion”), a subsidiary of Medallion Midstream LLC, today announced the successful closing of the binding open season for its proposed crude oil pipeline, (the “Wolfcamp Connector”), as well as for the southward extension of the proposed pipeline, (the “Reagan Gathering Extension”). As previously announced, the binding open season for the Wolfcamp Connector and the then-proposed Reagan County Extension commenced on October 29, 2013; was supplemented on January 24, 2014 to reflect the modified route, configuration, and operations of the Reagan Gathering Extension (to replace the originally proposed Reagan County Extension); and, as supplemented and extended, closed on February 3, 2014.
“We are excited to be providing infrastructure that is crucial to the development of our customer’s oil and gas reserves.”
Based on the binding capacity bids received from prospective shippers during the open season, Medallion has executed long-term Transportation Service Agreements which, in the aggregate, provide more than sufficient capacity commitments to move forward with the construction of both the Wolfcamp Connector and the Reagan Gathering Extension on a schedule that is expected to place both pipelines in-service by the 4th quarter 2014.
Medallion’s combined crude oil gathering system will extend approximately 112 miles through the Midland Basin, and will initially be capable of receiving and transporting up to 65,000 barrels per day of crude oil for delivery to take away pipelines at the Colorado City hub accessing both Cushing and Gulf Coast markets via existing and new major crude oil take away pipelines, including the proposed BridgeTex Pipeline. With the installation of mid-point pump stations the Wolfcamp Connector is expandable to approximately 100,000 barrels per day of capacity.
“The Wolfcamp Connector represents the next step in Medallion’s previously announced plan to provide fully integrated services to our customers in the fast growing Midland Basin,” said Randy Lentz, CEO of Medallion. “We are excited to be providing infrastructure that is crucial to the development of our customer’s oil and gas reserves.”
More information concerning the Wolfcamp Connector, the Reagan Gathering Extension, and the binding open season is available on the Medallion website (www.medallionmidstream.com) or by contacting the Medallion representative listed below.
Medallion Pipeline Company, LLC
222 West Las Colinas Blvd., Suite 1140E
Irving, Texas 75039
Attention: Paige Snider
About Medallion Midstream, LLC
Medallion Midstream is an Irving, Texas based full services midstream provider specializing in the construction and operation of natural gas and crude oil midstream infrastructure. Medallion delivers customized, turnkey, oil and gas solutions and exceptional customer services. Medallion is a portfolio company of The Energy & Minerals Group. To learn more about Medallion, please visit www.medallionmidstream.com.
About The Energy & Minerals Group
The Energy & Minerals Group is the management company for a series of specialized private equity funds. EMG focuses on investing across various facets of the global natural resource industry including the upstream and midstream segments of the energy complex. EMG has approximately $8.4 billion of total investor commitments (including co- investments) with approximately $5.1 billion allocated across the energy sector since inception. For additional information on EMG, please contact Alexandra Coolidge at 713-579-5029.