Oryx Midstream announces US$ 300 million equity commitment

Oryx Midstream Services in Midland reported an equity commitment of up to US$ 300 million with various investors that will allow the company to pursue midstream opportunities in the Permian Basin, initially focusing on the Delaware Basin in West Texas and New Mexico.

Oryx's announcement also stated the company signed long-term, fee-based contracts with three exploration and production companies. Two of them were private Midland-based companies and a third was a “large, publicly traded independent company.” The names of the companies were not released, but Oryx reported they dedicated production from wells in a roughly 340 000 acre area in Lea County, New Mexico, to the project.

Oryx’s plans call for up to 60 miles of rich gas gathering pipeline and up to 80 miles of crude oil gathering pipeline to accommodate production from multiple formations in that area, according to the announcement. Construction is expected to begin this month.

The company’s announcement also included plans to pursue third-party volumes inside the acreage area “and more broadly across the basin.” Investors named in the announcement were “Quantum Energy Partners, Post Oak Energy Capital, Wells Fargo Energy Capital, Oryx management and other private investors.”

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/10042014/oryx_midstream_announces_us_300_million_equity_commitment/