The Powder River Basin has been through its share of boom-and-quieter cycles over the years. The current period is somewhere in between. Not a frenzy, but not quiet either. For mineral owners in Converse and Campbell counties, activity has remained meaningful enough that it is worth paying attention to what is happening.
The operators we see most often
A handful of operators account for most of the horizontal drilling in the core of the modern PRB oil play. EOG continues to carry the largest position and is the most active permit filer. Chord Energy, the result of earlier consolidation, has a significant program as well. Continental Resources has been present for a long time and remains active. Anschutz is one of the larger private operators and works a meaningful position in the basin.
These names show up on royalty statements across both counties, and they are the ones who most commonly file the pooling orders that affect mineral owners in the area.
What is being targeted
Horizontal drilling in the modern PRB oil play primarily targets the Niobrara, Turner, and Parkman formations. There are other productive zones across the basin, but these three are where most of the current activity is focused.
Well lengths have continued to extend. Two-mile laterals are now common, and longer ones are increasingly part of the mix. Pad density has also grown, with more wells drilled per surface location than was typical five years ago.
Unit sizes and voluntary combinations
One thing that comes up regularly in pooling orders in the PRB is voluntary multi-section unit combinations. The statutory drilling unit in Wyoming is often a single section (640 acres), but operators frequently combine multiple sections into larger voluntary units to develop longer-lateral wells.
For a mineral owner, the practical effect is that your proportional interest in a larger voluntary unit is smaller than it would be in a single-section unit, but the wells drilled in that larger unit are typically more economic. The net effect on your income depends on the specifics.
What we keep an eye on
When we are tracking PRB activity for a tract, we look at a few things. Recent permit filings in the township. Spacing applications, which typically precede pooling by several months and are a useful early indicator. Pooling orders filed by nearby operators. Offset well performance, where public data is available.
Those together give a reasonable picture of what to expect for a specific tract, whether it is currently leased or not.
If you own in the area
Converse and Campbell counties account for a large share of our ongoing work in Wyoming. If you own minerals in either of those counties, or in Johnson County to the northwest, we are happy to take a look at what is happening in your specific township. A short conversation and a records pull usually gives you a clearer picture than weeks of speculation.