Kingfisher Midstream, LLC (“Kingfisher Midstream”), a wholly
owned subsidiary of Alta Mesa Resources, Inc. (“Alta Mesa”)
(NASDAQ:AMR), Blueknight Energy Partners, L.P. (“BKEP”)
(NASDAQ:BKEP) (NASDAQ:BKEPP), and affiliates of Ergon, Inc.
(“Ergon”; Private), today announced the execution of definitive
agreements to form Cimarron Express Pipeline, LLC (“Cimarron
Express”). The venture will include the construction and operation
of a new crude oil pipeline serving STACK producers in central
Oklahoma with a new 65-mile, 16-inch crude oil pipeline extending
from northeastern Kingfisher County, Oklahoma, to BKEP’s Cushing,
Oklahoma, crude oil terminal. The pipeline will provide direct
market access at Cushing for producers and will have an initial
capacity of 90,000 barrels per day, expandable to over 175,000
barrels per day. The new pipeline is expected to be completed in
mid-2019.
The ownership of Cimarron Express will be 50% Kingfisher
Midstream and 50% Ergon. Ergon, owner of the general partner of
BKEP, will hold its ownership in Cimarron Express through a newly
created, wholly owned subsidiary, ERGON – OKLAHOMA PIPELINE, LLC
(“Devco”). Ergon and BKEP also entered into an agreement that gives
each party 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 approximately
120,000 net acres in Kingfisher and Garfield counties.
Under the terms of the agreement, BKEP will construct and
operate the pipeline. Also, BKEP will continue to operate its
existing crude oil storage facilities in Cushing, Oklahoma. The
receipt terminal for the newly constructed Cimarron Express
pipeline will be located at Kingfisher Midstream’s crude oil
storage facility located in northeastern Kingfisher County. The
pipeline will connect to Kingfisher Midstream’s crude oil gathering
system and truck unloading facilities at the Kingfisher Midstream
crude oil facility.
“We are excited to participate in this project which will
provide direct market access to the Cushing Oil Terminal for STACK
producers and afford them the opportunity to maximize the value of
their crude oil production,” added Craig Collins, COO of Kingfisher
Midstream. “We also see long-term value in this project for
Kingfisher Midstream as we aggregate STACK oil volumes on our crude
gathering system to deliver to Cimarron Express.”
“We are pleased to be participating in this important project
with a leader in the development of the prolific STACK production
area in Oklahoma,” commented Mark Hurley, CEO of BKEP. “This
pipeline will create a direct connection to our storage assets at
our Cushing Crude Oil Terminal, enabling Alta Mesa Resources and
other STACK producers to efficiently and safely move their
production to the market. The addition of this pipeline underscores
our commitment to work with exploration and production companies to
build the needed infrastructure to support their capital
investments. We are also happy to be working with Ergon, the owner
of our general partner, who is supporting this project through the
Devco structure. It is another example of the strategic
relationship we envisioned when Ergon purchased our general partner
in 2016.”
“This venture continues Ergon’s support of BKEP and our 64-year
history of operations in the crude oil and petroleum market,”
commented Emmitte Haddox, Ergon CEO. “As BKEP’s general partner, we
are excited about working with Alta Mesa Resources on this project
that will create value not only for our companies, but for other
STACK producers, customers, and the communities in which we
operate.”
About Alta Mesa Resources, Inc., and Kingfisher Midstream,
LLC
Alta Mesa Resources, Inc., is an independent energy company
focused on the development and acquisition of unconventional oil
and natural gas reserves in the Anadarko Basin in Oklahoma, and
through Kingfisher Midstream, LLC, provides best-in-class midstream
energy services, including crude oil and gas gathering, processing
and marketing to producers in the STACK play. For more information,
please visit http://altamesa.net/.
About Blueknight Energy Partners, L.P.
BKEP owns and operates a diversified portfolio of complementary
midstream energy assets consisting of:
- 10.4 million barrels of liquid asphalt
storage located at 56 terminals in 26 states;
- 6.9 million barrels of above-ground
crude oil storage capacity, approximately 6.6 million barrels of
which are located at the Cushing Interchange terminalling facility
in Cushing, Oklahoma;
- 655 miles of crude oil pipeline located
primarily in Oklahoma; and
- 65 crude oil transportation vehicles
deployed in Kansas, Oklahoma and Texas.
- BKEP provides integrated terminalling,
gathering and transportation services for companies engaged in the
production, distribution and marketing of liquid asphalt and crude
oil. BKEP is headquartered in Oklahoma City, Oklahoma. For
more information, visit BKEP’s web site at www.bkep.com.
About Ergon
Ergon is a group of privately held companies that operate under
six primary business segments: Refining & Marketing, Asphalt
& Emulsions, Transportation & Terminalling, Oil & Gas,
Real Estate and Corporate & Other. For more information, visit
Ergon’s website at www.ergon.com.
Safe Harbor Statement and Disclaimer
The information in this press release includes “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements, other than statements of
present or historical fact included in this press release,
regarding strategy, completion date, pipeline capacity, future
operations, prospects, plans and objectives of management are
forward-looking statements. When used in this press release, the
words “could,” “should,” “will,” “may,” “believe,” “anticipate,”
“intend,” “estimate,” “expect,” “project,” and similar expressions
are intended to identify forward-looking statements, although not
all forward-looking statements contain such identifying words.
These forward-looking statements are based on current expectations
and assumptions about future events and are based on currently
available information as to the outcome and timing of future
events. These forward-looking statements are subject to risks and
uncertainties, most of which are difficult to predict and many of
which are beyond our control. Except as otherwise required by
applicable law, each company disclaims any duty to update any
forward-looking statements, all of which are expressly qualified by
the statements in this section, to reflect events or circumstances
after the date of this press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20180510005584/en/
Blueknight Energy Partners, L.P.Investor Relations,
918-237-4032investor@bkep.comorMedia Relations:Brent Gooden,
405-715-3232 or 405-818-1900orAlta Mesa Resources, Inc.Lance L.
Weaver, 281-943-5597lweaver@altamesa.netorErgon, Inc.Kathy Potts,
601-933-3000Director of Marketing
Communicationskathy.potts@ergon.com
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