Powder River Basin News Pulse July 2020

The Powder River Basin| July 2020

Field Overview

The Powder River Basin, known for its coal deposits, is located in Southeast Montana and Northeast Wyoming. The basin is named so because it is drained by the Powder River. Major cities in the area include Gillete and Sheridan, Wyoming and Miles City, Montana. There is a recent resurgence in oil and gas production as a result of horizontal drilling and hydraullic fracturing. This resurgence is occurring mainly in the Wyoming part of the basin, which is historically known as the source of the basin’s oil.


State Drilling Statistics (End of July)

Total Rigs in Wyoming: 1
Total Rigs in United States: 251
Total U.S. Rigs down 73% YTD

State Top Producers

Top Oil Producer- Devon Energy
Top Gas Producer- Carbon Creek Energy


Financial & Economic Updates

Tax Exemption from the Cowboy Regulators

Wyoming regulators are looking for more ways to ease the strain the producers in the state are currently experiencing as a significant part of the state’s revenue is generated from oil and gas activities. The current proposed solution is a bill that exempts producers from paying tax until WTI prices reach $45 per barrel of light sweet crude and $38 per barrel for sour grades produced in the state. The Petroleum Association of Wyoming stated that it recognized the incentive price had to be high enough to not rob the state of too much funding, but low enough and near a break even price so that companies would be able to come back regardless of the incentives. This serves to alleviate the strain on existing producers and incentivize others to begin operations in Wyoming. The bill is still being deliberated, but this could be big news in the long term for both the state and operators.

Article Link


State Highlights

Tulsa Company Exploits Niobrara and Mowry

Rebellion Energy II, LLC announced the results of 2 new wells it drilled in the Powder River Basin of Wyoming. The Diablo well which targeted the Niobrara formation had a 24 hour initial production rate of 3,060 boe/d. The 30 day rate fell to 2,056 boe/d. The sister well, Coronado, generated 24 hour and 30 day rates of 2,283 boe/d and 1,798 boe/d respectively. President and CEO Staci Taruscio stated, “Our team’s ability to execute at such a high level at this point in the basin’s life-cycle demonstrates the viability of these resource plays as both predictable and repeatable.  The caliber of both our team and assets is encouraging as we look to push development in the PRB.” It definitely seems like a big gamble in these times, but Rebellion appears to have pulled off decent initial production. Hopefully they can find someone to sell the oil to.

Article Link


Top Oil Producers (2020 cum)

RankCompanyProduction
(Bbl)
1Devon5,696,035
2Chesapeake4,232,660
3EOG3,677,860
4Ballard Petro. Holdngs1,547,837
5FDL Operating1,533,093

Top Gas Producers (2020 cum)

RankCompanyProduction
(Mscf)
1Carbon Creek35,382,606
2Chesapeake22,149,284
3EOG17,979,525
4Devon7,881,416
5Peak Powder River5,085,465

Refining


Wyoming Oil Production


Wyoming Gas Production


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The information contained in this newsletter is provided by RARE
PETRO Engineering, PLLC via the following sources unless otherwise
noted:

www.eia.gov
www.drillinginfo.com
www.bhge.com
RARE Petro Analytics

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