On Point Oilfield revealed that it has signed five new produced water gathering and disposal contracts with multiple operators in Howard, Martin, and Midland Counties in Texas.
The new contracts, varying from long term acreage dedications to minimum volume commitments and multiwell pad site dedications, are expected to add significant new volumes to its existing business as On Point has quickly grown into the largest commercial disposal operator by volumes in the Midland Basin.
On Point CEO Trace Hight said: “We are excited to add these new customers and contracts to On Point’s growing produced water midstream portfolio. Our customers are seeing tremendous well results in these areas, and we look forward to providing critical water infrastructure that enables full development of these positions.
“Our deep disposal wells and pipeline systems will help ensure their future wastewater volumes are handled and disposed of in an environmentally safe and cost-effective manner.”
In addition to its existing 14 disposal wells connected to more than 105 miles of produced water pipelines, On Point will be drilling up to three new deep Ellenberger disposals and constructing between 20 to 30 miles of new pipelines before year-end to service these new contracts.
The new assets in Howard, Martin and Midland counties will grow On Point’s permitted disposal capacity to over 375,000 bbls/d connected to more than 130 miles of pipeline gathering infrastructure.
Source: Company Press Release