Kingfisher Midstream LLC, Oklahoma City, a wholly owned subsidiary of Alta Mesa Resources Inc., Blueknight Energy Partners LP (BKEP), and affiliates of Ergon Inc., will construct a crude oil pipeline serving STACK producers in central Oklahoma through newly-formed Cimarron Express Pipeline LLC.
BKEP will construct and operate the 65-mile, 16-in. crude oil pipeline extending from northeastern Kingfisher County, Okla., to BKEP’s Cushing, Okla., crude oil terminal, which it will continue to operate. The pipeline will have an initial capacity of 90,000 b/d, expandable to over 175,000 b/d. Completion is expected in mid-2019.
Cimarron Express will be owned 50/50 by Kingfisher Midstream and Ergon. Ergon, owner of the general partner of BKEP, will hold its ownership through a new wholly owned subsidiary, ERGON – OKLAHOMA PIPELINE LLC (Devco). Both Ergon and BKEP have rights concerning the purchase or sale of Devco, subject to certain terms and conditions.
Concurrent with the formation of Cimarron Express, Alta Mesa executed a long-term acreage dedication and transportation agreement with Cimarron Express, which incorporates 120,000 net acres in Kingfisher and Garfield counties.
The receipt terminal for the pipeline will be Kingfisher’s crude oil storage facility in northeastern Kingfisher County and will connect to Kingfisher’s crude oil gathering system and truck unloading terminal.
