HOUSTON, July 17, 2019 (GLOBE NEWSWIRE) -- Blue Mountain Midstream LLC (“Blue Mountain”), a wholly owned subsidiary of Riviera Resources, Inc. (OTCQX: RVRA), announced today one of its subsidiaries has entered into a definitive agreement with Roan Resources LLC (“Roan Resources”) to gather Roan Resources’ crude oil in the prolific Merge play. The agreement provides for a 10-year term covering an 89,000 net acre dedicated area in nine Townships in central Oklahoma.
Greg Harper, President and CEO of Blue Mountain, said, “Blue Mountain continues to grow our relationship with Roan Resources while expanding our scale and capabilities with this fully fee-based business line. By adding crude gathering, Blue Mountain can now provide our E&P customers a full suite of midstream services complementing our existing gas gathering and processing and water management services. We are excited to provide another commercial service that will positively impact the community by significantly reducing high volume trucking associated with Oklahoma’s oil production.”
Blue Mountain plans to construct an initial crude system consisting of approximately 50 miles of gathering pipelines with two downstream interconnections providing anchor shipper Roan Resources with direct access to the Cushing market. The Blue Mountain system will initially be capable of transporting up to 60,000 barrels per day of crude oil, but the ultimate system size and capital requirements will be determined following the contracting of additional shippers at the conclusion of an open season process. With the trunkline facilities designed within Blue Mountain’s existing asset footprint in the core of the Merge play, construction can commence immediately with initial commercial in-service beginning by year-end.
“We are excited that we are able to provide our current and future customers another value-added service that not only reduces their operating costs but also provides access to a market that will increase their economic net-backs,” Greg Harper added. “Service diversification has been a keen focus as we continue to successfully execute our plan establishing Blue Mountain as a premier multi-service midstream company in the Merge/SCOOP/STACK.”
ABOUT BLUE MOUNTAIN MIDSTREAM LLC
Headquartered in Houston, Texas, Blue Mountain is a full-service midstream company offering gathering, compression, processing, treating, transportation and marketing services to oil and gas producers in the Merge/SCOOP/STACK plays. Operations are primarily focused on production from the Woodford and Mississippian formations and the core Merge Shale trend in central Oklahoma. Blue Mountain is a wholly owned subsidiary of Riviera Resources, Inc.
ABOUT RIVIERA RESOURCES
Riviera Resources, Inc. is an independent oil and natural gas company with a strategic focus on efficiently operating its mature low-decline assets, developing its growth-oriented assets, and returning capital to its stockholders. Riviera’s properties are located in the Hugoton Basin, East Texas, North Louisiana, the Uinta Basin and Mid-Continent regions. Riviera also owns Blue Mountain Midstream LLC, a midstream company centered in the core of the Merge play in the Anadarko Basin.
Statements made in this press release that are not historical facts are “forward-looking statements.” These statements are based on certain assumptions and expectations made by the Company which reflect management’s experience, estimates and perception of historical trends, current conditions, and anticipated future developments. These statements include, among others, statements regarding business strategy and other plans and objectives for future operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or anticipated in the forward-looking statements. These include risks relating to the Company’s financial and operational performance and results, low or declining commodity prices and demand for oil, natural gas and natural gas liquids, ability to hedge future production, ability to replace reserves and efficiently develop current reserves, the capacity and utilization of midstream facilities and the regulatory environment. These and other important factors could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Please read “Risk Factors” in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information or future events.
Riviera Resources, Inc.
Source: Riviera Resources, Inc.