Velocity Midstream Partners LLC reports that Velocity Central Oklahoma Pipeline LLC, a wholly owned subsidiary of Velocity, will construct a crude oil gathering and transportation system in the fairway of the prolific SCOOP play in central Oklahoma.
Continental Resources Inc. (NYSE: CLR) has executed an agreement to be the customer of the system. Continental is a dominant leaseholder in the SCOOP area, with approximately 471,000 net acres.
Velocity's system will gather crude oil from points designated by Continental Resources in Grady, Stephens, Garvin, and McClain counties, and will provide transportation and interconnections to downstream pipelines with direct access to Cushing, Oklahoma. The crude oil pipeline and terminals are under construction and will be placed into service early second quarter of 2015. This is the first phase of Velocity's infrastructure development plans to serve key producers involved in the rapidly developing Woodford and Springer shale plays underlying the SCOOP play.