Denver-Julesburg (DJ) and Powder River Oil Full Cycle Costs

November 1, 2024

Denver-Julesburg (DJ) Oil Full Cycle Costs

Denver-Julesburg (DJ) oil full-cycle costs at West Texas Intermediate (WTI) equivalent range from a low of USD $39.56/Bbl for wells with an Initial Productivity (IP) greater than 1800 Bbl/d to a high of USD $162.35/Bbl for wells with an IP of under 300 Bbl/d. Average Operating costs USD $7.81/Bbl while royalties & taxes and overhead are USD $20.46/Bbl. F&D costs range from USD $5.97-$73.69/Bbl and the 15% producer return ranges from USD $4.86-$59.93/Bbl. The assumed WTI differential is USD $0.46/Bbl.

Denver-Julesburg (DJ) Full Cycle Cost Curve

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Incorrys analysis shows that there is 4,000 MMBbl of oil resource available below USD $50/Bbl and 5,000 MMBbl available below USD $60/Bbl. Current production (2023) was 470 MBbl/d (172 MMBbl/yr).

Powder River Oil Full Cycle Costs

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Powder River oil full-cycle costs at West Texas Intermediate (WTI) equivalent range from a low of USD $48.36/Bbl for wells with an Initial Productivity (IP) greater than 1800 Bbl/d to a high of USD $270.34/Bbl for wells with an IP of under 300 Bbl/d. Average Operating costs are USD $8.96/Bbl while royalties & taxes and overhead are USD $19.35/Bbl. F&D costs range from USD $10.51-$129.57/Bbl and the 15% producer return ranges from USD $9.08-$112.00/Bbl. The assumed WTI differential is USD $0.46/Bbl.

Powder River Full Cycle Cost Curve

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Incorrys analysis shows that there is 1,900 MMBbl of oil resource available below USD $50/Bbl and 5,900 MMBbl available below USD $60/Bbl. Current production (2023) was 155 MBbl/d (56.6 MMBbl/yr).

DJ and Powder River Basins Location

Denver-Julesburg (DJ) and Powder River are located in northeastern Colorado and eastern Wyoming extending into parts of Nebraska, South Dakota and Montana.

Denver-Julesburg (DJ) and Powder River Number of Drilling Locations

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Incorrys estimates that DJ and Powder River have 57,000 drilling locations with initial productivity above 300 Bbl/d and over 91,000 drilling locations with initial productivity below 300 Bbl/d.