Wolf Midstream Partners, a full-service midstream provider, announced it has executed a crude oil gathering and transportation agreement with an independent producer for approximately 25,000 dedicated gross leasehold acres in the prolific Permian Basin of West Texas.
To support the agreement and other area producers as needed, Wolf plans to construct approximately 50 miles of new crude oil gathering pipelines with an expected capacity of 55,000 barrels per day. Additionally, Wolf has established a delivery point near Colorado City TX and plans to construct terminal facilities, with interconnects into multiple downstream pipelines.
“We are excited about this partnership with a seasoned operator and look forward to building out this new system,” said Curtis Ewers, Wolf Midstream chief executive officer. “The Wolf team has a long and successful history developing midstream solutions that provide producers with creative, reliable service. This new system will solidify our position in the Permian region, where we remain very focused on deploying the necessary capital and developing the infrastructure needed to address our customers’ long-term and immediate needs.”
Construction activities have begun, and Wolf expects the new system to start service in the second quarter of next year.
Headquartered in Dallas TX, Wolf was formed in June 2017 to provide efficient, cost-effective gathering, treating, processing, compression, and transportation services to oil and gas producers. The company’s four managing partners have a strong track record of 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 Basin, and Permian Basin.
Wolf is financially backed by Sinclair Oil Corporation and Cowboy Midstream, both privately-held, longstanding, family companies.