spwm powderriverIncreasing interest in oil development in Wyoming’s Powder River Basin was highlighted in January when two midstream companies agreed to combine separate pipeline operations into a new carrier to move crude from Wyoming and Colorado to a terminal in Cushing.

Tallgrass Energy Partners and Kinder Morgan’s Wyoming Interstate Company agreed to a project that would combine their lines to transport an additional 800M b/d of light crude and 150M b/d of heavy from points in the Powder River and DJ Basins to the Deeprock terminal at Cushing, according to a company release.

From Cushing, producers can ship to the Gulf Coast and export markets on several interstate carriers, including on the Seahorse Pipeline, a Tallgrass project planned for 2020.

spwm tallgrassThe combined development also calls for 200 miles of new pipeline and conversion of an existing natural gas line to crude service. Once operational, the pipeline will to add incremental crude takeaway for producers in the Bakken, the companies said.

Last year, the Tallgrass subsidiary BNN Water Solutions expanded its footprint in the Bakken with the acquisition of Buckhorn Energy Services and its 10 SWD wells and 39 miles of produced water gathering lines. Later in 2018, Tallgrass acquired the Bakken water infrastructure operated by NGL Energy when NGL decided to exit the water business in the Bakken. The acquisition includes five SWD wells in McKenzie and Dunn Counties, N.D.

One of the larger E&P companies in the Powder River basin, Samson Resources, in January reported opening of a well that it claimed set a record for the highest 24-hour and 30-day production of any oil well in the Shannon formation.

The Spearhead Federal, a horizontal well in Converse County, was drilled to a depth of 10,931 ft with a total depth of 21,182 ft. According to a company release, the well was completed with 1,243 lbs/f of proppant and produced a peak 3,815 boe/d during startup and 2,339 boe/d during its 30-day initial production run. The fluid output was claimed at 97 percent oil during the IP run.

Samson has applied for 2,390 drilling permits to be operated in Wyoming that target both conventional and unconventional formation across the company’s 145M net acres in the Power River basin.