Taproot Energy Partners said that its newly formed affiliate, Taproot Rockies Midstream (Taproot), has started the construction and operation of a multi-product midstream system in the DJ Basin made up of natural gas, crude oil and produced water gathering, natural gas treating and processing and fresh water supply.

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Image: Onshore drilling. Photo: courtesy of Stuart Miles/Freedigitalphotos.net.

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.

Taproot CEO Kevin Sullivan said: “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.”

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.

Taproot COO Rod Donovan said: “Our existing connections to premium downstream markets will allow Taproot to provide the best possible netbacks for our producer customers in the area.

“We look forward to supporting area operators’ development plans in all phases of our midstream operations.”

Source: Company Press Release