Goodnight Midstream announces a multi-year partnership to provide pipeline disposal service for Callon Petroleum Company in the southern Delaware Basin.
Goodnight will build, own and operate a produced water pipeline connecting Callon’s Spur acreage in Ward County, Texas to saltwater disposal wells in the Central Basin Platform. The new system will reliably move produced water volumes out of the Delaware Basin, providing Callon assurance of sufficient disposal capacity at a low cost per barrel.
“We are pleased to continue our expansion in the Permian with this unique partnership with Callon, a leading operator in the basin,” said Patrick Walker, Chief Executive Officer of Goodnight Midstream. “By piping produced water out of the Delaware Basin at large scale, we are leading the way in providing a long-term, sustainable outlet for the growing volumes of produced water generated by our producers. The shallow, porous and depleted formations of the Central Basin Platform provide the ideal disposal reservoirs for the millions of barrels of saltwater the Delaware Basin will produce in the decades to come.”
Joe Gatto, President and Chief Executive Officer of Callon Petroleum, commented, “We are very pleased to be working with Goodnight Midstream to take this next step forward in our Delaware asset development. This partnership helps to position Callon as a leader in operational logistics in the basin. Our pipeline disposal solution has positive net present value implications for our Spur development and provides substantial capital reduction for Callon beginning in the second half of 2018.”