November 1, 2024

Denver-Julesburg

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.

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

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.

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.

Number of Drilling Locations

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.