A Houston-based natural gas company agreed to a $450 million acquisition of assets in southeastern Oklahoma, which will close by the end of 2024, the company announced in a news release Oct. 4.
Summit Midstream Partners will acquire more than 300,000 acres of land and more than 400 miles of pipeline energy infrastructure from Edmond-based oil and gas company Tall Oak Midstream lll in the fourth quarter of the year after entering an agreement Oct. 1. Assets also include an active oil rig and a processing plant.
“The Arkona Basin has a very unique position both geographically and (production-wise),” said Ryan Lewellyn, president and CEO of Tall Oak Midstream. “Assets have high-processing capacity to keep up with Summit’s growth and bring the product to market fairly quickly.”
Acquiring acreage in the area will allow Summit Midstream Partners to draw a straight line of production to the Gulf Coast from Oklahoma, making it a valuable investment for the company. With high gas-producing energy infrastructures in place and lower costs to drill wells, Lewellyn said he expects there to be significant production growth.