The agreement includes the dedication of over 65 wells, which are located within five miles of San Mateo’s existing salt water gathering system in Eddy County, New Mexico.
In addition, San Mateo has started drilling its fourth commercial salt water disposal well in Eddy County, New Mexico and expects to begin drilling a fifth commercial salt water disposal well in Eddy County, New Mexico later in the second quarter or early in the third quarter of 2018.
Upon completion of these additional salt water disposal wells, San Mateo expects to have total salt water disposal capacity in excess of 230,000 barrels per day in Eddy County, New Mexico and Loving County, Texas. San Mateo expects to dispose of over 200,000 barrels per day of salt water as early as the first quarter of 2019, which includes expected volumes from the agreement announced above as well as expected volumes from San Mateo’s other contracted producers in Eddy County, New Mexico and Loving County, Texas.
San Mateo vice president and general manager Matt Spicer said: “We are pleased to announce that we have entered into this significant contract with Marathon Oil for salt water gathering and disposal in Eddy County, New Mexico.
“This contract, and others we have entered into in late 2017 and early 2018, have diversified San Mateo’s customer base as we continue to provide first class midstream services to our anchor customer, “Matador Resources Company, and to other producers in the area. We pride ourselves on generating value for our customers by providing services across all three production streams—oil, natural gas and salt water—and look forward to continuing to be a full-service midstream solution for producers in the northern Delaware Basin.”
Source: Company Press Release
