Southern Ute Indian Tribe Seal Southern Ute Indian Tribe Seal Aka Energy

History

Aka Energy Group, LLC was established in 2002 by the Southern Ute Indian Tribe (“Tribe”) to pursue business opportunities in the natural gas midstream sector of the energy industry outside the external boundaries of the Tribe’s reservation in southwestern Colorado.

The Southern Ute Indian Reservation lies in the northern half of the San Jan Basin, just north of the Colorado/New Mexico border. In the 1990’s, the Southern Ute Indian Tribe built substantial wealth and expertise in the natural gas industry based primarily on the Tribe’s land ownership in the San Juan Basin coalbed methane play. Recognizing the concentration of its assets, the Tribe set about diversifying its portfolio in the late 1990’s. Today, through a structure called the Southern Ute Growth Fund, the Tribe manages a diversified multi-billion dollar portfolio of investments both on and off the Southern Ute Indian Reservation, including substantial investments in oil and gas exploration, production, and midstream services; real estate, property development, and property management; alternative energy; and a wide variety of private equity investments.

Aka got its start in the Denver Julesburg (DJ) Basin by purchasing the Gilcrest gas processing plant and the Kersey compressor station. These assets are located in Weld County, Colorado. Aka has further developed both these facilities and the gathering systems associated with them to meet the needs of producers in the DJ Basin.

In 2004, Aka Energy purchased Frontier Field Services, LLC (“Frontier”) and Lumen Energy Corporation (“Lumen”), two midstream companies with headquarters in Tulsa, Oklahoma. These two companies’ assets included cryogenic plants and gathering and treating facilities which are located in Kansas, New Mexico, Oklahoma and West Texas. Aka combined the two companies’ Tulsa staffs into one office and has maintained the Lumen and Frontier names because of customer familiarity. Many of the assets have been upgraded or expanded since Aka’s purchase, bringing additional value to existing customers and allowing Aka to provide service to new customers.

In 2005, Aka acquired the Empire Abo gas plant, which is located 25 miles west of Frontier’s Maljamar Gas Plant in southern New Mexico. These two gas plants and their gathering systems can handle over 100 mmcfd.

Since early 2005, Aka has grown by building new plants and systems rather than by acquisitions. Key projects have included:

  • Increasing the capacity of the Kelton cryogenic plant in the Texas Panhandle from 20 mmcfd to 115 mmcfd.
  • Rebuilding the Amber plant in central Oklahoma with a new cryogenic expander skid (20 mmcfd).
  • Modified and placed in service a second (8 mmcfd) cryogenic skid at the Kingman plant near Wichita, Kansas.
  • Building many new compressor stations and upgrading and expanding many others.
  • Aka installed several small refrigeration skids at a compressor station to service a handful of liquid-rich wells for a specific customer.
  • Adding hundreds of miles of gathering system to meet customer needs.

Aka is currently expanding our Southeast New Mexico Maljamar plant, gathering, and field compression capacity by 75 mmcfd.