The new pipeline runs parallel to Velocity's existing SCOOP system which is fully contracted and has a current capacity of 100,000 barrels per day. The new pipeline and planned gathering lines, coupled with the four (4) newly constructed dual-product truck injection terminals, will enable producers throughout the SCOOP to segregate their heavier crude barrels (produced from the Springer and Woodford oil formations) from their lighter barrels (produced from the Woodford condensate formation). The pipeline and gathering assets dramatically reduce or eliminate trucking costs and provide product segregation for barrels that have distinctly different uses and markets.
With several recent acreage acquisitions in the SCOOP, permits doubling since this time last year, and a marked increase in rig counts, the new pipeline system, planned to be in service mid-2017, will support this increase in development activity and the associated increases in crude oil and light oil production. Velocity's multi-pipeline corridor through the fairway of the SCOOP allows it to reach more than 400,000 proved gross acres of the Woodford formation and more than 200,000 proved gross acres of the Springer formation, most of which is located within less than 10 miles of Velocity's main pipeline corridor.
"This new pipeline project allows Velocity to leverage and broaden its existing footprint in Grady, Stephens, Garvin and McClain counties," said Van Nguyen, Velocity Midstream's COO. "Velocity will utilize its multi-line rights of way, construction crews, and operations teams already assembled to quickly and cost-effectively construct and operate the second pipeline and expanded terminal facilities. Additionally, Velocity will continue to build out gathering laterals and injection stations to better serve SCOOP producers."
"We are excited to complete the Wynnewood Pipeline and to announce the looping of our existing SCOOP system in support of increased activity in the crude oil and condensate windows of the SCOOP play," said Rick Wilkerson, Velocity Midstream's President and CEO. "Velocity is focused on serving the producers in the SCOOP by decreasing their transportation costs and connecting their barrels to the highest valued and most reliable markets."
About Velocity Midstream Partners, LLC
Velocity (www.velocitymidstream.com) is an independent midstream service provider that engineers, constructs, and operates crude oil and natural gas gathering and transportation solutions. Velocity was formed in 2008 by Rick Wilkerson and Mike Parker. COO Van Nguyen joined Velocity in 2010. Velocity partnered with Energy Spectrum Capital (www.energyspectrumcapital.com) in 2008. Velocity currently owns and operates three crude terminals and 75+ miles of crude oil gathering and pipeline transportation assets through the core of the SCOOP play in Central Oklahoma.
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SOURCE Velocity Midstream Partners, LLC