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HOUSTON, July 17, 2018 (GLOBE NEWSWIRE) — Blue Mountain Midstream LLC (“Blue Mountain”), a wholly owned subsidiary of LINN Energy, Inc. (OTCQB:LNGG) (“LINN” or the “Company”), announces successful commissioning of its Chisholm Trail III cryogenic gas plant, located in the heart of the prolific Merge/SCOOP/STACK plays near Tuttle, Oklahoma on the company’s 80-acre facility in Grady County. Blue Mountain completed this major processing capacity addition to its Chisholm Trail system at the end of the second quarter, and highlights the following:
- State of the art cryogenic processing facility with 250 million cubic feet per day (“MMcf/d”) of processing capacity and 62,000 horsepower of compression is now online in the Merge/SCOOP/STACK plays with 108 miles of gathering pipe in service.
- The plant has an initial design capacity of 150 MMcf/d with the full 250 MMcf/d to become available by the fourth quarter of 2018 upon installation of an additional 25,000 horsepower of compression.
- Based on producer commitments and anticipated production growth from Roan Resources LLC and other upstream producers, Blue Mountain is currently evaluating a second train of up to 250 MMcf/d of additional capacity.
Once at full capacity, the Chisholm Trail III plant and its related gathering is forecasted to generate annualized EBITDA between $100 million and $125 million. The Chisholm Trail system is processing over 100 MMcf/d and the plant will be capable of processing up to initial capacity level of 150 MMcf/d in the coming weeks to meet producer demands. The Chisholm Trail system also includes interconnections into the Southern Star Central, Enable Gas Transmission and ONEOK Gas Transportation natural gas pipelines. In addition, ONEOK Hydrocarbon is providing NGL transportation from the facility. The system is supported by a dedicated acreage position of more than 80,000 net acres under long-term contracts with natural gas producers in central Oklahoma.
“We are pleased to announce the startup of our new Chisholm Trail cryogenic gas plant, which significantly expands our processing capacity in the prolific Merge/SCOOP/STACK plays,” said Greg Harper, Blue Mountain’s President and Chief Executive Officer. “Blue Mountain is a best in class midstream company providing superior customer service and exceptional reliability in our growing footprint.”
“Blue Mountain’s customers continue to see exceptional drilling results, drilling efficiencies and are increasing their drilling activity. In light of this combined with our growing acreage commitments, throughput forecasts for the area continue to rise. In response, we will add processing capacity and access to downstream markets, to stay ahead of our customers’ drilling schedules. This includes evaluating the addition of a second train expansion to the facility,” Greg Harper added.
Based on increased customer drilling activity and demand for additional processing and treating capacity to serve their significant growth plans in the Merge/SCOOP/STACK plays, Blue Mountain is evaluating another system expansion with the addition of a second train, which would increase total processing capacity to 500 MMcf/d by late 2019. Additional expansion plans could entail 55,000 horsepower of new compression, more than 130 miles of high and low pressure gathering line extensions, and additional delivery interconnects in operation by the end of 2020.
ABOUT BLUE MOUNTAIN MIDSTREAM LLC
Headquartered in Houston, Texas, Blue Mountain is a full-service midstream company offering gathering, compression, processing, treating, transportation and marketing services to oil and gas producers in the Merge/SCOOP/STACK plays. Operations are primarily focused on production from the Woodford and Mississippian formations and the core Merge Shale trend in central Oklahoma. Blue Mountain is a wholly owned subsidiary of LINN Energy, Inc.
ABOUT LINN ENERGY
LINN Energy, Inc. was formed in February 2017 as the reorganized successor to LINN Energy, LLC. Headquartered in Houston, Texas, the Company’s current focus is the development of the Merge/SCOOP/STACK in Oklahoma through its equity interest in Roan Resources LLC, as well as through its midstream operations in that area. Additionally, the Company is pursuing emerging horizontal opportunities in Oklahoma, North Louisiana and East Texas, while continuing to add value by efficiently operating and applying new technology to a diverse set of long-life producing assets.
Forward-Looking Statements
Statements made in this press release that are not historical facts are “forward-looking statements.” These statements are based on certain assumptions and expectations made by the Company which reflect management’s experience, estimates and perception of historical trends, current conditions, and anticipated future developments. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or anticipated in the forward-looking statements. These include risks relating to financial and operational performance and results of the Company and Roan Resources LLC, timing of and ability to execute planned separation transactions and asset sales, continued low or further declining commodity prices and demand for oil, natural gas and natural gas liquids, ability to hedge future production, ability to replace reserves and efficiently develop current reserves, the capacity and utilization of midstream facilities and the regulatory environment. These and other important factors could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Please read “Risk Factors” in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other public filings. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information or future events.
CONTACT:
Investor Relations
LINN Energy, Inc.
(281) 840-4110
[email protected]
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