Powder River Basin News Pulse September 2021

Posted: October 20, 2021

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

RankCompanyPermits
Approved
1EOG7
2Purewest Energy5
3Jonah Energy3
Hyperlinks to available Q2 2021 Reports

Top Producers BOE

RankCompanyMMBOE Production (8/21)
1EOG 12.6
2Chesapeake 7.46
3Carbon Creek7.08
4Devon 7.07
5Denbury Resources6.96
Hyperlinks to available Q2 2021 Reports

Rig Count


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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