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Caballo Energy LLC has reported that the company’s Carmen Gas Processing Plant in Alfalfa County, Okla., is now online.
The new cryogenic processing plant has the capacity to process 60 million cubic feet of natural gas per day (MMcf/d) bringing Caballo’s total processing capacity in the region to approximately 100 MMcf/d.
The Carmen plant serves expanding natural gas production in the liquids-rich Mississippi Lime and Cana Woodford shale plays. Long-term dedications to the Carmen facility total more than 125,000 acres. The plant is currently operating at 80 percent of its total capacity.
The Carmen plant is strategically located near Carmen, Okla., at the intersection of the liquids-rich Mississippi Lime and Cana Woodford Shale plays. Caballo is evaluating the addition of a second cryogenic processing plant at the 160-acre site. The additional plant would give Caballo 220 MMcf/d in processing capacity at the Carmen location as early as June 2014.
The new Carmen plant and Caballo’s existing Eagle Chief plant also in Alfalfa County serve the company’s Eagle Chief system, which includes more than 600 miles of natural gas gathering pipelines and compression facilities located in Alfalfa, Blaine, Garfield, Major and Woods counties. Caballo delivers processed gas to the ONEOK Gas Transportation and Panhandle Eastern Pipe Line. Natural gas liquids are delivered to the ONEOK NGL Pipeline. The Eagle Chief system also includes salt water disposal and crude oil gathering systems. Caballo acquired the Eagle Chief system in December 2011.
Caballo President and CEO Bob Firth commented: "Bringing the Carmen plant online is an exciting step forward as we continue to expand the Eagle Chief system. Horizontal drilling has brought a boom to northwestern Oklahoma. There is a great deal of drilling activity focused on the liquids-rich gas found in the Mississippi Lime and Cana Woodford shale formations. We believe the region has significant potential for future growth, particularly to the east and into Kansas. We are excited to be part of this growth and provide the processing capabilities our customers need."