Blue Mountain Midstream LLC has announced that one of its subsidiaries has entered into a definitive agreement with Roan Resources LLC., to gather Roan Resources’ crude oil in the prolific Merge play. The agreement will provide a 10-year term covering an 89,000 net acre dedicated area in nine townships in central Oklahoma.
“Blue Mountain continues to grow our relationship with Roan Resources while expanding our scale and capabilities with this fully fee-based business line. By adding crude gathering, Blue Mountain can now provide our E&P customers a full suite of midstream services complementing our existing gas gathering and processing and water management services. We are excited to provide another commercial service that will positively impact the community by significantly reducing high volume trucking associated with Oklahoma’s oil production,” said Greg Harper, President and CEO of Blue Mountain.
According to Blue Mountain, the plan is to construct an initial crude system consisting of approximately 50 miles of gathering pipelines and be capable of transporting up to 60,000 barrels per day of crude oil. Also there will be two downstream interconnections providing anchor shipper Roan Resources with direct access to the Cushing market.