Caballo Energy LLC is building a new cryogenic processing plant to serve expanding natural gas production in the liquids-rich Mississippi Lime and Cana Woodford Shale plays. Known as the Carmen Gas Processing Plant, the new facility will have the capacity to process 60 million cubic feet of natural gas per day (MMcf/d), bringing Caballo’s processing capacity in the region to approximately 100 MMcf/d. The Carmen plant will be in service by the end of the first quarter of 2013. The plant is strategically located near Carmen, Oklahoma, at the intersection of the liquids-rich Mississippi Lime and Cana Woodford Shale plays. The 160-acre site allows for the construction of a second cryogenic processing plant at the same location.
The new Carmen plant and Caballo’s existing Eagle Chief plant 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: “The liquids-rich gas found in the Mississippi Lime and Cana Woodford shale formations provides an attractive return for producers, even under current pricing conditions. Our plans also call for the development of an additional cryogenic processing plant next to the Carmen plant. An additional plant could be up and running rapidly depending upon market conditions and demand, further enhancing our ability to meet the needs of our customers."