Velocity Midstream Partners, LLC ("Velocity") announced 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), an Oklahoma City based exploration and production company, has executed an agreement to be the customer of the system. Continental is a Top 10 independent oil producer in the United States and is the dominant leaseholder in the SCOOP with approximately 471,000 net acres.
Velocity's system will gather crude oil from points designated by Continental Resources, Inc. in Grady, Stephens, Garvin, and McClain counties, and provide transportation and interconnections to downstream pipelines with direct access to Cushing. 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 shales underlying the SCOOP play.
"We're very pleased to be working with Continental to launch our SCOOP crude pipeline project. Continental is a highly successful producer with a great track record in discovering and developing these plays," said Rick Wilkerson, Velocity's Chief Executive Officer. Wilkerson added, "Velocity's experience in developing crude oil pipelines and gathering systems in the Eagle Ford makes Velocity uniquely qualified to construct and operate these systems."