[Context: On July 13, a subsidiary of ARB Midstream, backed by BV Natural Resources, announced a long-term, fee-based crude oil transportation services agreement and expand its Niobrara position. Further details and related links are below.]
ARB Midstream Secures Large Production Dedication in Colorado’s Niobrara Play and Announces Plans to Expand the Crude Gathering System
Denver, CO, July 13, 2017 – Platte River Midstream, LLC (“PRM”), a subsidiary of ARB Midstream, LLC (“ARB”), today announced it has secured a long-term, fee-based crude oil transportation services agreement with one of the largest acreage holders and oil producers in the DJ Basin (“the Company”). The Company has dedicated production from existing and all future wells drilled in a 9-township area in and around the Berthoud, Windsor and Greeley areas of Weld County, Colorado. The crude oil production will be gathered by pipeline into PRM’s Lucerne West facility.
“This agreement creates a premier midstream platform for ARB Midstream in the DJ basin with a significant amount of dedicated production under long-term gathering agreements. The Company is one of the DJ’s largest and most successful producers in the DJ Basin,” stated Adam Bedard, Chief Executive Officer at ARB Midstream, “and they will provide significant growth in throughput for PRM’s gathering system.”
Platte River’s gathering system, which has a capacity of 157,000 b/d and serves multiple producers, started service in mid-2016. The system gathers crude oil from the inner core of the DJ Basin, and delivers it to long haul pipelines for delivery into to downstream markets including direct access to the market center at Cushing, Oklahoma. The system also includes storage tanks and truck stations to maximize shipping and delivery options.
“With over 100-miles of pipeline in the ground by the end of this year, the Platte River Gathering System serves two primary objectives – to provide safe, reliable pipeline take away capacity to support the Company’s rapid crude oil growth in the DJ Basin and to improve wellhead economics through stronger price realizations. Gathering crude oil by pipeline also meets the Company’s goal of significantly reducing truck traffic from their production facilities. The Agreement with PRM secures these objectives for the Company for the long term,” remarked Pat McMurry, ARB’s Senior Vice President of Gathering and Logistics.
About ARB Midstream, LLC
ARB Midstream, LLC is a privately held company, based in Denver, CO, that provides complete midstream and marketing solutions for crude oil, LPGs and refined products. ARB markets crude oil and operates assets in Colorado, Texas, Wyoming, North Dakota, and Calgary, AB.
ARB was formed with a strategic financing relationship with BV Natural Resources, LLC, the energy division of Ball Ventures, LLC. Ball Ventures, LLC is a private company headquartered in Idaho Falls, Idaho, founded by Allen Ball, an Idaho businessman and entrepreneur that has helped build several successful companies, some of which operate in markets around the world. Under the leadership of CEO Cortney Liddiard, Ball Ventures, LLC has expanded its portfolio of real estate and private equity investments, in addition to the energy division of the company.