A roundup of the main developments regarding water in the oil & gas industry for December 14-January 3.
Investment firm Blackstone Infrastructure Partners agreed to pay $22.45 per outstanding Class A share of Tallgrass Energy. Expected to close in Q2 2020, the deal follows the firm’s January 2019 purchase of a 44.2% stake in the midstream company. Blackstone will fund the acquisition with around $3 billion of equity and debt.
Texas-based cloud services company Twenty20 Solutions announced it had expanded its portfolio to provide automation and remote monitoring software for saltwater disposal wells (SWDs) and connected pipelines. Key aspects of the company’s new offering include automated regulatory compliance reporting, alert and alarm capabilities and a customizable electronic ticketing system.
Gradiant Energy Services completed a 1,000-bbl/d pilot project for its patented Carrier Gas Concentration technology, an enhanced evaporation solution. The pilot was conducted with an unnamed super-major operating in the Permian Basin. The system used associated gas to vaporize pre-treated produced water, leaving behind a very concentrated brine. Total dissolved solids (TDS) in the vapor was measured at less than 500 ppm. Gradiant expects the technology to be deployed in Q3 2020.
WaterBridge Holdings raised $345 million from private equity firms Five Point Energy and Magnetar Capital, as well as Singaporean sovereign wealth fund GIC and the company’s own management team. WaterBridge said the capital would be used to fund organic growth in the southern Delaware Basin as well as pipeline and SWD acquisitions from Tall City Exploration III, Jetta Permian and Primexx Energy Partners.
Digital oilfield services provider SitePro used funding from shareholders and a debt facility issued through JP Morgan Chase to acquire fellow technology and automation company Integrated Control Solutions. The deal will strengthen SitePro’s solutions offering for water management infrastructure
Oklahoman water midstream company Bison will acquire water assets in the SCOOP play from exploration & production company Gulfport Energy Corporation. The deal includes a disposal permit and infrastructure allowing for water gathering and delivery, freshwater supply of 55,000 bbl/d, recycling of 40,000 bbl/d and storage of 2.3 million bbls. Bison will also manage the producer’s water under 15-year agreements.
According to the Oklahoma Corporation Commission (OCC), saltwater is gushing to the surface of a wheat field at an average rate of around 281 bbl/d, much faster than the 120 bbl/d recorded in November and around 70 bbl/d recorded in October. However, the OCC says the overall flow is lower than the high of 466 bbl/d. The state agency has also said that formation pressure has dropped nearly 50% since measurements began in September in several nearby SWDs that were shut in after the purge was discovered.