Occidental Petroleum and Anschutz Exploration confirmed the transaction but didn't disclosed details as, separately, Powder River Basin operator Peak Resources plans an IPO this week. (Source: Shutterstock.com)
Occidental Petroleum has reduced its Powder River Basin interest in a sale to privately held Rockies explorer Anschutz Exploration.
Oxy has been marketing property this year towards reducing debt from its $12 billion cash-and-stock purchase of Permian Basin-focused CrownRock LP that was closed this summer.
The amount of working interest and net acres involved in Wyoming’s Powder River Basin sale have not been disclosed.
Joe DeDominic, Anschutz Exploration president, told Hart Energy, “We did acquire a portion of Oxy’s assets in the Powder River Basin, with Oxy retaining their core Converse County position.”
However, he added, “we are not able to discuss any terms per our agreement with Oxy.”
Another Powder producer familiar with the deal told Hart Energy that Anschutz “purchased mostly non-op in the north from Oxy—not in Converse County,” Wyoming, and that “Oxy ran a marketing process starting a few months ago.”
Oxy is retaining its core Powder River acreage, a company spokesperson told Hart Energy.
"Oxy’s recent sale of assets in the Powder River Basin to Anschutz included non-core assets that were not part of our near-term development plans," Oxy said in a statement. "The divestiture to Anschutz specifically excluded lands in Converse and Niobrara counties, which is core of the Powder River Basin that Oxy intends to develop. Oxy is committed to Wyoming, our operations, and our interests in the Powder River Basin and across the state."
More details were not provided. Oxy’s third-quarter earnings call is scheduled for Nov. 13, when more information on its divestments to date might be provided.
According to the Oxy’s 2023 annual report filed earlier this year, the company had more than 300,000 net acres in the Powder, primarily in Converse and Campbell counties. The figure excludes acreage and fee minerals in Wyoming that are outside of what it considers its core position, it added in the report.
Peak IPO
Anschutz averaged 48,000 boe/d in 2023, 74% oil, according to Enverus data.
The primary targets in the Powder are Turner, Niobrara, Mowry and Parkman. The leasehold is mostly locked up by Anschutz, Oxy, Devon Energy, EOG Resources and Continental Resources.
Of the 604 rigs currently drilling in the U.S., 11 are working in the Powder, according to Enverus. Of the balance, 273 are drilling in the Permian Basin.
Privately held Powder operator Peak Resources plans to IPO this Wednesday and begin trading on the NYSE as “PRB” on Thursday.
The estimated 4.7 million shares are expected to price at between $13 and $15 per share, according to its latest S-1 update filed with the Securities and Exchange Commission.
Separately, Devon reported this summer that it may look to convert its Powder position to development mode later this decade.
“I just want to keep it on your horizon as a really valuable piece of our portfolio that probably has zero value out there in the world [in] our share price,” Clay Gaspar, Devon COO, told investors and securities analysts.
Meanwhile, “we're going to be able to ride the back of the Delaware Basin and the other really strong basins that are much more mature and developed while we unlock the potential in the Powder,” Gaspar said.
J.P. Morgan Securities analyst Arun Jayaram reported earlier this year in a “basin scorecard” review that top Powder operators’ six-month total cumulative volumes were up 3.8% from 2023 to 12 boe per lateral foot, while the average decreased 13% to 7.6 boe/ft.
In three-month oil productivity, the top operators were Devon with 10 bbl/ft, private operator Rockies Resources with 5.8 bbl/ft and Oxy with 5.6 bbl/ft.
Proppant load averaged 1,709 pounds per lateral foot. “The most intense completion designs were utilized by EOG, Oxy and Anschutz,” Jayaram reported.
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