One of the BEST coverages on Apache's build-out


#1

https://seekingalpha.com/article/4189701-apaches-alpine-high-update-still-livin-pipe-dream

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#2

Trying to put all these facilities into context.
How will the purpose of the Diamond and Salt Creek Midstream cryogenic plants compare with, say the existing EagleClaw East Toyah Plant?..Is it a cryo plant too, or just a much bigger version of Apache’s Redwood, Cherokee, Dakota and Cheyenne CPFs?
And until the Diamond and SCM cryo plants are finished, what are Apache’s CPFs doing in the mean time? I get that the CPFs use the enormous compressors to force gas into the pipelines, but is that where they also separate methane from mixed NGLs?
I also get that the cryo plant LNG trains will freeze down gas to turn it into liquid form, but is this mixed gas or just methane being froze down?
What’s happening in the mean time until these cryo plants are placed online?
If you have knowledge about how all this works, would appreciate your insight.


#3

Kathy9…All natural gas is about 85 to 90 percent METHANE. NGLs…Natural Gas Liquids are naturally occurring liquid molecules in the natural gas…ethanes such as butane, propane. The cryogenic cracking tower takes the compressed gas from the recompressors at some multiple of
the line pressure needed to put the gas on the pipeline (typically around 900 pounds per square inch)
and, using propane they have already separated from the inlet gas stream, they refrigerate the gas
stream in the cryogenic cracking contactor…so the various liquids condense and separate in the tower
into liquid ethanes from butane, propane, pentanes (including liquified METHANE that Jeff Bezos’ Blue Origin and SpaceX space launch rocket engines use for fuel with liquid oxygen) and higher order
hydrocarbon chains (gasoline for instance) separate out of the gas stream according to molecular
weight and vapor pressure. These are the natural gas liquids products which can be blended back together,shipped down a pipeline to gulf coast refineries where the liquids are separated from the conglomerate liquid product by molecular sieves again according to molecular weight, temperature, and pressure.

All these NGL cryo plants are making the same liquids and dry gas products and shipping them down
the same pipelines to the Gulf coast and West coast of the USA where they are separated again and either put on tanker ships
to be taken to third world countries that use them for generating electricity and cooking…or, shipped
by pipeline up the East Coast of the USA or Mexico for use in Central and South America, for use by Americans in the big cities for running electrical grid generators, making plastic products such as extruded poly pipes, and heating/cooling homes
and businesses.
What’s really amazing about this whole process is that WE ARE DOING THIS ALL WITH THE AVERAGE PRICE PER 1000 CUBIC FEET OF GAS COSTING LESS THAN $3. They can’t do that
anywhere else in the world for that price.
So, hats off to the AMERICAN oil and gas industry…the BEST in all the world. And, the Permian/Delaware basins are now supplying half the entire world’s products. JMHO.

ol’ Lawrence in Verhalen


#4

Kathy9…Condensing down what I expressed before…Apache with other major US oil and gas
exploration/production firms is building a worldwide transportation/export sales system for PROFIT.
So, they all work together and profit handsomely…and thereby bring in TRILLION$ to the USA… that’s why President Trump is removing constricting regulations and other impediments to Exploration and Production for all US companies and their employees. He’s running the country like a CEO…a businessman that he is, ultimately.
IF our enemies worldwide don’t attack us and find a way to destroy us…the USA will become the preeminent economic and military POWER of the entire world. The MAGA agenda.

ol’ Lawrence in Verhalen


#5

Thank you Lawrence Rayburn for the response.
I later discovered that Eagle Claw East Toyah plant has its own website…it has cryos and has a processing capacity of 60 MMcf/d…I wonder how that compares to the announced Diamond cryo plant north of Balmorhea and if it will be as big of a complex?
For anyone who’s interested, Penn State has a good easy to understand YouTube video about NGLs, the video is called “Natural Gas Liquids.”


#6

Page 6 of the Seeking Alpha article shows Apache’s 2018 spuds so far. Does anyone know what is so unique about the Cypress State and Mont Blanc leases that caused Apache to spud TEN wells on each lease, all done in a matter of months? Family has interests a little ways west of them. Anyone with “boots on the ground” know anything?


#7

Kathy9…Yes, Cypress State and Mont Blanc leases are over one of the better reservoirs for high
volume NGLs…natural gas liquids…of Apache’s development of over 400,000 acres in the area.
Because the stacked shale plays are stacked anticlines…that is domes that have been stretched
in one dimension forming a barbell shaped formation in between the shale caps above and below
the producing zone…there are concentrations of high liquids natural gas and oil in the ends of those
‘barbell’ formations, so it is economically more efficient to exploit those concentrations first.
EagleClaw is building a second Cryo NGL plant near the first but on the south side of IH-20…and
both are over 160 Million cubic feet of gas daily capacity.
Apache is building 4 Cryo gas plants just north of Balmorhea on both sides of FM2903 and are projected to build 4 more Cryo gas plants on the north and west sides of Toyah on County Roads 222
and 225. The nexi of all the pipelines carrying gas from the fields on both sides of FM2903 and both
sides of Hwy 17 will demand 30 inch gathering pipelines running along County Road 336 from FM2903
east to Hwy 17 where it becomes Barilla Road CCR 112 and continues east to Texas Hwy 285. There
it splits and one half goes to the WAHA gas processing complex and the other half goes to the new
350 Million cu ft of gas/day Energy Transfer plant near the joint boundary of Reeves County and Pecos
County. That’s what is planned and the plan is expanding as Apache makes further acquisitions of
companies and leases.

So, if your family has land and minerals near Toyah…just hold your horses…Apache and other major
developers ARE coming your way.

ol’ Lawrence in Verhalen


#8

Figure 2A - Alpine High - Infrastructure & Pipeline July, 2018 Update

Alpine High July, 2018 Infrastructure Update

Notice that Figure 2A is an updated version of Figure 1, which includes the recent announcements of infrastructure additions within the Alpine High footprint. The first announcement was by Apache and Salt Creek Midstream, LLC (“Salt Creek”). The two companies announced the formation of SCM Alpine, LLC (“Alpine”) to develop a 445,000 Bbl/d capacity natural gas liquids (NGLs) header system to transport NGLs to Waha. Apache has an option to acquire a 50% stake in the system, which consists of two pipeline segments: a north/south segment from Apache’s Diamond Cryo Complex and an east/west segment from Salt Creek’s facility under construction just south of Toyah, TX. At Waha, the NGL pipeline will connect to other pipelines to access markets in Mont Belvieu and Corpus Christi.

////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
See that 42 inch gas line from Mexico that passes to the East of Alpine and goes to WAHA at Coyanosa? On the west side of that pipeline northeast of Alpine is the developmental complex of
Apache at the old abandoned town of Hovey on the railroad. Apache is building a ‘Central Processing
Facility’ there (a euphamism for a BIG Cryogenic Natural Gas Liquids extraction plant)…and will
put their product on that 42 inch line to be distributed all over. That 42 inch line from Mexico also
conveniently passes by the 350 Million CFD Energy Transfer Plant being built there now.
Apache is developing the whole area in a vertically integrated fashion of area or regional modules.

ol’ Lawrence in Verhalen


#9

Click on maps to enlarge

Figure 5B - Alpine High 1H 2018 New Spuds Map

Alpine High 1H 2018 New Spuds Map

Figure 6B - Alpine High New Permits Map

Alpine High 1H 2018 New Permits Map


#10

Lawrence Rayburn, I think you recently mentioned somewhere else Apache is putting in a 700 person mancamp at 2903 and Interstate 10? I was happy to hear that - it’s a good indicator of their commitment to the area. Have they started on it yet? Any idea how it will compare size-wise to Apache’s other one on Interstate 20, just west of the town of Pecos? I think they expanded that one not long ago. I’d be surprised if Balmorhea water/sewer goes to the north side of the interstate, but maybe extending is part of the deal. Or just using well water.


#11

A continuation to the above on “infrastructure” build-out…while looking at Apache’s recent well spuds on Google Map’s satellite view, I noticed a business listing for “Johnny’s RV Park” - right in the middle of the desert! (between Toyah and Balmorhea, near the intersection of county roads 336 and 328). Not sure if the listing was placed there in error. And the satellite image is too old to see anything recently built. But that spot is right in the thick of Apache’s operations, so certainly could be accurate spot…It would be pretty cool to find something like that out in the middle of “nowhere.” “Nowhere” today may be changing fast with so much going on!


#12

No, Apache’s 700 man ManCamp at Balmorhea uses NO water, sewer, or electrical facilities that have anything to do with Balmorhea. It’s totally separate and independent. They may not have employees children attending Balmorhea ISD…they are talking about building the Man Camps into independent townships with their own water, sewer, electricity infrastructure and providing facilities for all employees children to be home schooled. They can have their own stores and make their own deals with chains like Long John Silvers Seafood, or Arbies, Western Sizzlin’ Steakhouses…etc. They could even make the ManCamps gated secure communities with no access by those not employed by Apache.

And,why should they stimulate the local economy of Balmorhea after the way Apache was treated by the local resident ‘farmers’ and ‘ranchers’??

Apache Corp is holding all the aces and can call the tunes everyone in Reeves county dances to.
They would LIKE to have the good will of the people, but they can still develop Reeves county without it if they must. JMHO…

ol’ Lawrence in Verhalen


#13

Lawarance - that sounds like it is reaching into the area where my land is located. It turns out to be the north west corner of section 39, block 13. That is the location of the clover leaf on 10 and the state highway building. Anoutherwords , between 2903 and 10, including the clover leaf, South side.
Some infrastructure must already exist to service the State Hwy building. There was talk in the past about building a shopping center in the area, long before 2016. Also, does 10 have night lighting along it?(electricity).


#14

Melissa…The last I KNEW the land on the west side of FM2903 on the north side of the TxDOT yard that is on the west side of FM2903 belongs to the heirs of Congressman Richard C. Slack, deceased…and they are down around San Antonio and Austin someplace. That’s on the south off ramp of IH-10 on the West side of FM2903. The land across FM2903 at the crossing of IH-10 on the EAST side of FM2903…I dunno who owns until you get down to Cemetery road…and the Hoffmans own that.

The Apache ManCamp is being built on the west side of FM2903 on the northwest side of the intersection of IH10 and FM2903…on the Johnson ranch.

I guess that’s diagonally across the intersection from your land.

ol’ Lawrence in Verhalen


#15

BTW, Melissa, Kiewitt Corporation has a gravel/materials mining operation on the Northeast side of the intersection of FM2903 and IH10…on the east side of FM2903. The north frontage/service road to IH10 bounds their mine property on the southwest side and FM2903 is their western boundary for about 2000 feet of frontage there. I believe they own the entire section there for mining.

And, NO there are no lights or ramp illumination at that intersection…Exit 209 on IH10.

ol’ Lawrence in Verhalen


#16

Thanks for that information. I spoke to an Apache rep on Friday asking for updates on plans for the area and got the old company line, i.e. , we(Apache) are assessing the area, drillinging will take place before April 2019, or land lease will be renewed.
Lawrence, your boots on the ground information is greatly appreciated. I see directly across 10 from us a new well was spud in May.


#17

Melissa…yes and the pad for that new well they are drilling there butts up against the big pad area they are about to build that 700 man ManCamp on. It already has a perimeter planted with trees to form a windbreak perimeter. They will soon put up their own water tower to provide 40 PSI drinking water all over the ManCamp…they have their own water wells in the Barilla aquifer there for drinking water and they will have their own municipal water supply operator license.
They are building their own electrical transmission grid to power all their facilities in the area…so they will have their own electricity in the ManCamp. The only drawback I can see is that the employees who maintain their RV homes in the ManCamp cannot OWN the property. I would much rather see 3 to 5 acre surface lots that employees COULD buy and homestead…build a permanent home there and hand down as inheritance to children.
I lived in the Pure Oil Company, Dollarhide Production Camp when I was 2 to 6 years old (1951-1956)…and what sucked about it was not owning the land to have something to sell when we moved to Wink, Texas for me to start school, and my Dad having to drive that 34 miles from Wink to Dollarhide every day he worked until 1976 when he retired.
I want to see the oilfield workers and their families STAY in the area and raise their families here…but there’s a lot of opposition by the entrenched ‘farmers’ and ‘ranchers’ of the area.

ol’ Lawrence in Verhalen…oilfield trash born, be oilfield trash dead when I die


#18

Lawrence I don’t know if you like old fashion detective writing, but writer Jim Thompson was right out of the Texas oil fields in the 1930’s, 40’s. He did every kind of oil field work back then. He went on to be a novelist and screen writer . His early stories are about Texas , oil, oil workers, life in the oil fields. Probably your father’s genaration or a little older. If you get a chance, you might enjoy reading his biography.


#19

Also, where I live, there use to be a lot more transient living situations like your man camp. Around the airplane factory and the race track. Later it catured to construction workers building infrastructure, subway freeway etc… and mass suburbs, next students and lastly, imigrants. Then a lot of empty buildings, Pentecostal churches and kidney dilasis centers, methadone distribters… Now, we are experiencing complete demolition of the old and rebuilding into a totaly new modern condo things. Selling like hot cakes to 30 somethings. Somebody is making money. So it is, here in maryland.


#20

Yeah…Melissa…we are rebuilding the rust belt steel centers, the coal mines, and especially the inner cities east of the Mississippi and north of the Ohio rivers…where the population centers are…but, that’s NOT where the resources are exploited or the MONEY made to support our American economy. It’s always been so…the population dense areas of the northeast and Atlantic coast of the US, and since the 50s the population dense areas of the West coast…are trying to politically govern the majority of working class Americans in the states west of the Mississippi where the ‘natural’ resources are located. No one wants a strip mine or oil and gas drilling/fracking operation in THEIR backyard…but it’s fine for those people who work with their hands to develop those energy sources to have it in THEIR backyards in their states.
In other words, you couldn’t live in NYC, Boston, Philadelphia, etc if it weren’t for those oilfield trash workers and coal miners producing the energy and materials to support your lifestyle in such cities…but, the majority of our population does not give credit to that part of the population that makes it all possible for them. Thankfully, our new President labors under no such delusion. He knows the American skilled worker is vital to maintaining the USA as number one economy in the world.

ol’ Lawrence in Verhalen…oilfield trash born, oilfield trash dead when I die