The Powder River Basin | September 2021
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 hydraulic 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
Total Rigs in Wyoming- 18
Total Rigs in United States- 528
Total U.S. Rigs up 98% YTD
State Permitting Data
Permits Approved – 31
Powder River Top Producer
Top Producer by BOE – EOG
Basin Highlights
Devon Energy Companies Agree to Pay $6.15 Million to Settle False Claims Act Allegations
Devon Energy Corporation has agreed to pay $6.15 million to settle claims that it broke the False Claims Act by underpaying and underreporting royalties for natural gas extracted from federal lands in Wyoming and New Mexico. In exchange for royalties on the value of the gas produced, the United States leases federal lands for natural gas extraction. Lessees are responsible for bringing the gas into marketable condition at no cost to the US. Devon unlawfully withheld payments to third-parties for gas transportation and processing, including costs to put the gas in marketable condition, when calculating royalties, according to the settlement.
Contango Oil & Gas to Acquire ConocoPhillips Wyoming Assets
On July 8, Contango Oil & Gas Co. agreed to pay $67 million in cash for ConocoPhillips Co.’s Wind River Basin asset in Wyoming. Following its multibillion-dollar acquisition of Concho Resources, ConocoPhillips intends to divest up to $10 billion in noncore assets over the next two years. Meanwhile, the Contango deal comes after KKR’s Energy Real Assets team merged with Independence Energy LLC last month to establish KKR’s principal platform for exploring upstream oil and gas prospects. Independence Energy LLC was built and managed by KKR’s Energy Real Assets team.
Operators With Most Permits in WY
| Rank | Company | Permits Approved |
| 1 | EOG | 7 |
| 2 | Purewest Energy | 5 |
| 3 | Jonah Energy | 3 |
Top Producers BOE
| Rank | Company | MMBOE Production (8/21) |
| 1 | EOG | 12.6 |
| 2 | Chesapeake | 7.46 |
| 3 | Carbon Creek | 7.08 |
| 4 | Devon | 7.07 |
| 5 | Denbury Resources | 6.96 |
Rig Count
Wyoming Oil Production
Wyoming Gas Production
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