DENVER--(BUSINESS WIRE)--Taproot Energy Partners LLC announced today that its affiliate, Taproot Rockies Midstream LLC (“Taproot”), has initiated the construction and operation of a multi-product midstream system in the DJ Basin comprised of natural gas, crude oil and produced water gathering, natural gas treating and processing and fresh water supply. The project is located in central Weld County, Colorado, northeast of Denver. The system will initially serve a substantial acreage dedication from Bison Oil & Gas II, LLC (“Bison”) and strategically position Taproot to provide similar midstream services to other operators active in this area.
“Due to improvements in completion techniques, increasing drilling activity and rapid growth of the Niobrara and Codell stacked plays of the DJ Basin in Weld County, additional midstream infrastructure is required. The Northeastern Wattenberg, one of the most rural parts of the DJ Basin, has seen meaningful growth in well productivity and drilling activity from leading operators including Bison, Noble Energy and others. Bison’s wells (which are 6,750’ laterals) have utilized cutting-edge completion techniques and have generated 30-day peak production rates of over 900 barrels of oil equivalent per day (“Boepd”) (85% crude oil and liquids), yielding exceptional drilling economics in numerous benches. Area operators’ near-term drilling programs are resulting in significant volume growth, which provide a very compelling opportunity for Taproot to expand its midstream infrastructure. Taproot is excited about the opportunity to design, construct and operate the midstream infrastructure that supports Bison’s development in this area,” said Kevin Sullivan, Taproot CEO.
Construction of the system is currently in progress, with all four systems targeted for completion in the fourth quarter of 2018. The natural gas gathering system will provide state-of-the-art processing technology resulting in the highest-available recovery of natural gas liquids for the liquids-rich gas that is produced in this part of the DJ Basin. Crude oil will be gathered and transported to Tallgrass’ Pony Express Pipeline at the Buckingham Terminal, with access to several Midwest refiners and the market center in Cushing, Oklahoma. Additionally, Taproot has negotiated multiple downstream arrangements for natural gas liquids and residue gas volumes. “Our existing connections to premium downstream markets will allow Taproot to provide the best possible netbacks for our producer customers in the area,” said Rod Donovan, Taproot COO. “We look forward to supporting area operators’ development plans in all phases of our midstream operations.”
About Taproot Energy Partners LLC
Based in Denver, Colorado, Taproot is a midstream company led by an experienced and successful management team with extensive prior experience in creating long-term value for its producer customers. Taproot management brings a full suite of skills to partner with producers in providing all necessary midstream services. Capabilities include natural gas gathering, compression, treating and processing, crude oil gathering and transportation, produced water disposal, fresh water supply, condensate treating/blending and natural gas liquids products marketing. Taproot is backed by Energy Spectrum Partners VII LP, based in Dallas, Texas.
Visit www.taprootep.com for more information.
About Energy Spectrum Capital
Based in Dallas, Texas, Energy Spectrum Capital is a midstream-focused private equity firm that has raised over $3.5 billion in capital commitments focused on investing in North America’s energy infrastructure. Since its inception in 1995, Energy Spectrum has sponsored over 55 portfolio companies.
Visit www.energyspectrum.com for more information.
About Bison Oil & Gas II, LLC
Based in Denver, Colorado, Bison Oil & Gas II, LLC is a privately-held exploration and production company with operations focused in Weld County, Colorado. Prior to Bison II, the management team successfully built and monetized assets in Adams and Arapahoe counties, Colorado, through Bison II’s predecessor, Bison Oil & Gas, LLC. Bison is backed by Carnelian Energy Capital Management, L.P., an energy investment firm based in Houston, Texas.
Visit www.bisonog.com for more information.