Wyoming Preps for a Drilling Bonanza

Wyoming Preps for a Drilling Bonanza

Little more than six years ago, five independent E&Ps signed on to propose a drilling project in the Powder River Basin. But these were no ordinary producers and what they collectively proposed was no ordinary project. With the approaching dawn of a new Administration, E&Ps are scarfing up $10,000-apiece drilling permits on federal lands, especially in N.M., and Wyo., where the oil crash has seriously bruised the states’ economies. Then there’s The Magnificent Five whose Converse County Oil and Gas Project has received a final nod from the BLM to drill 5,000 wells over 10 years. EOG Resources, Occidental, Chesapeake, Northwoods Energy, and Devon each have a seat at the board of what will be one of the largest oil and gas projects in Wyo., history. Extending across 1.5 million acres, the venture will include 1,500 miles of gathering pipe, hundreds of miles of water pipeline, numerous roads, and power lines. More than 8,000 jobs are expected to be created along with $18-$28 billion in tax revenues.

What do you think? Learn more about Reese Energy Consulting and our range of upstream, midstream, and downstream services at www.ReeseEnergyConsulting.com.

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Just Add Water

Just Add Water

Marvin Nash, a Wyo., cowboy with a storied history as wide as his full-brim hat, has developed an oilfield wastewater repurpose system that essentially rewrites the script for produced water management in arid climes. Reese Energy Consulting today visited with Nash and his company, Encore Green Environmental, which launched its pilot project in September after a call from a Wyo., wildcatter who told Nash, “I’ve got 50,000 Bbls of water in a pond and it’s gonna cost me $4-5 bucks per barrel to haul it off.” Nash said, “I can do it for half.” And he did. But that’s not the full story. EGE’s Conservation by Design system not only eliminates the need for disposal injection but irrigates land with treated produced water via mobile storage tanks and sprinklers—all in proximity to the wellsite. The process sequesters carbon, promotes photosynthesis through new vegetation, and reduces the impact of climate change. “Smart E&Ps understand the next midstream partner is the landowner himself,” Nash says. With 40% of the nation considered arid and thirsty, he’s now out to introduce his system in Texas and N.M.

 

Encore Green Environmental

Encore Green Environmental’s patent-pending methodology, Conservation By-Design™, brings the perfect storm together for unprecedented environmental and industrial results.

www.encoregreenenvironmental.com

What do you think? Learn more about REC and our midstream services at www.ReeseEnergyConsulting.com.

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Contango Strikes Again

Contango Strikes Again

Wilkie Colyer knows a target-rich environment when he sees it. Little more than a month ago, the CEO of Houston-based Contango Oil & Gas remarked on the company’s acquisition of Tulsa-based Mid-Con Energy as a response to “an industry in dire need of consolidation.” The $400 million all-stock deal expanded Contango’s presence in Okla., and Wyo., and added to a portfolio that includes operations in the Permian and offshore in the Gulf of Mexico. But flirtations with distressed and stranded assets in need of a new home didn’t stop there; as a matter of fact, it’s part and parcel of this E&P’s broader business strategy to strike when the iron is hot. Reese Energy Consulting today is following the latest strike by Contango, which will pick up a bank-owned package deal for $58 million that grows its presence in two of the company’s core operating areas by 182,000 net acres. The acquisition includes 7.5 MBOED of production and 18.3 MMBOE of PDP, oily, low-decline reserves in Wyo.’s Big Horn Basin and the Central Basin Platform and Northwest Shelf areas of the Permian. Looks like a bullseye. 

EVX Midstream

Contango Oil & Gas Company is an independent oil and gas company based in Houston, Texas, focused on the exploration, development, production and acquisition of natural gas and oil properties both onshore and offshore in the shallow waters of the Gulf of Mexico.

contango.com

What do you think?

Learn more about REC and our M&A services at www.ReeseEnergyConsulting.com.

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Midstreamers Announce Open Seasons

Midstreamers Announce Open Seasons

Dallas-based Navigator Energy has launched a binding open season for expansion of the company’s planned Borger Express Pipeline, which will extend from the Cushing Hub to Borger, Texas. The system will include an existing 180-mile crude oil pipeline and 200 miles of new pipe that will stretch from Cleo Springs, Okla., to Borger. Upon completion in early 2022, the Borger Express will be capable of transporting 90,000 BPD of five neat grades of crude oil and condensate bound for third-party storage facilities and a refinery in Borger. The call for shipper commitments runs from Oct. 5 – Nov. 5. Turning to the West, Dallas-based Holly Energy has announced a binding open season to expand crude oil capacity to 56,000 BPD on its 289-mile Frontier Aspen Pipeline. The Frontier Aspen, which runs from Casper, Wyo., to Frontier Station, Utah, connects to the company’s SLC Pipeline that ultimately delivers crude to Salt Lake City refiners. Commercial service is expected in 3Q 2021. Open season extends from Oct. 1 – Oct. 22.

Navigator Energy

Navigator Energy Services is a growth-oriented, independent midstream company focused on developing and delivering midstream infrastructure solutions for America’s energy producers. The company’s sole focus is to provide its customers with comprehensive midstream solutions that maximize both operational flexibility and the value of their hydrocarbons.

www.nesmidstream.com

What do you think?

Learn more about Reese Energy Consulting and our range of midstream services at www.ReeseEnergyConsulting.com.​