Oryx Midstream Services, LLC Launches Binding Open Season for Extension of Oryx Trans Permian System in the Delaware Basin
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 karl@oryxmidstream.com.
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.
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