Wolf Midstream Partners announced Wednesday it signed a crude oil gathering and transportation agreement with an unnamed independent producer for roughly 25,000 dedicated gross leasehold acres in West Texas’ portion of the Permian Basin.
To support the agreement and other area producers as needed, Wolf plans to construct roughly 50 miles of new crude oil gathering pipelines with an expected capacity of 55,000 barrels per day (BPD).
Additionally, Dallas-based Wolf has established a delivery point near Colorado City, Texas, and plans to construct terminal facilities, with interconnects into multiple downstream pipelines, Kallanish Energy understands.
“We are excited about this partnership with a seasoned operator and look forward to building out this new system,” said Curtis Ewers, Wolf CEO.
Construction has begun, and Wolf expects the new system to start service in the second quarter of 2018.
Wolf was formed in June 2017, with its four managing partners bringing more than 50 years of experience in the industry, having constructed and developed midstream assets in excess of $500 million in the Barnett Shale, Utica Shale, Williston Basin, Eagle Ford Shale, and Permian Basin.
Wolf is financially backed by two privately-held companies, including refiner/pipeline transporter/terminalling firm Sinclair Oil, and midstreamer Cowboy Midstream.
“Wolf’s leadership team has a promising vision and an impressive track record of success,” said Mark Petersen, president of Sinclair Transportation.