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Prairie Operating Expands Acreage in the Denver-Julesburg Basin
09/06/2023![Prairie-Operating-Expands-Acreage-in-the-Denver-Julesburg-Basin](https://images2.rextag.com/public/blog/177Blog_Prairie Operating Will Buy Exok Assets.png)
Prairie Operating Co. buys 20K+ acres in Weld County, CO, expanding its footprint in the core of the Denver-Julesburg Basin.
The evaluation report reveals that the land has more to offer beyond the initial findings and that hundreds of additional locations are viable for drilling in the future beyond an initial five-year program.
On August 21, Prairie Operating disclosed findings from an external, independent assessment focused on its inactive holdings in Weld County.
Acquisition Details
- Area Covered: Prairie Operating is acquiring a substantial 20,328 net mineral acres located in Weld County, Colorado.
- Partner: The company made this deal in an agreement with Oklahoma-based Exok Inc., as documented in filings with the Securities and Exchange Commission.
Financial Arrangements
- Cost Structure: The total cost of this acquisition is approximately $22 million. Of this sum, $18 million will be paid in cash, and the remaining $4 million will be provided as equity in Prairie Operating.
- Funding Source: In addition to the cash and equity arrangement, Prairie Operating secured funding through a $20 million Private Investment in Public Equity (PIPE) offering.
Resource Evaluation
- Potential Reserves: Initial evaluations indicate that the acquired land could potentially hold reserves of about 285.3 million barrels of oil equivalent (MMboe).
- Net Present Value (PV-10): The estimated value of these potential reserves, based on a PV-10 calculation, is approximately $2.4 billion.
Geological Aspects
- Formation Locations: These reserves are distributed across 412 qualified locations within the Niobrara and Codell geological formations.
- Reserve Composition: The potential reserves are composed mainly of oil and liquids (74%) and natural gas (26%).
About Prairie Operating Co.
Prairie Operating Co., formerly known as Creek Road Miners, Inc., is a publicly traded entity that specializes in the development, exploration, and production of oil, natural gas, and natural gas liquids. The company focuses its operations on unconventional oil and gas reservoirs in Colorado, particularly targeting the Niobrara and Codell formations. Alongside its energy activities, the company also has a foothold in the cryptocurrency mining sector. Committed to meeting the growing global demand for affordable and reliable energy, Prairie Operating Co. places a strong emphasis on environmental protection.
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Baker Hughes Confirms a Third Weekly Decline in US Oil and Gas Rigs
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/BLOG_Baker Hughes Confirms a Third Weekly Decline in US Oil and Gas Rigs.jpg)
In a recent announcement, energy services firm Baker Hughes stated that U.S. energy companies have decreased the number of operating oil and gas rigs for the third successive week. This development marks the first such consistent reduction since early September. As of October 6, the count for oil and gas rigs, considered a precursor to future production levels, has seen a decline by four, positioning it at 619. This is the lowest figure recorded since February of the preceding year. The overall rig count has decreased by 143 or 19% when compared to last year's statistics.
Sale of Texas Panhandle Assets by Unit Corporation Now Complete
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/212Blog_Sale of Texas Panhandle Assets by Unit Corporation (1).png)
Unit Corporation (OTCQX: UNTC) has successfully completed the sale of some of its non-core oil and gas assets located in the Texas Panhandle. This sale, involving assets known as the "Divested Assets," resulted in the company receiving $50 million in cash at the time of closing. This amount may be adjusted later according to the terms of the sale agreement.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/297_Blog_Keystone XL Pipeline Controversy and Wildlife Disaster From Trump's Green Light to Biden's Red Light on the 15 Billion Project.jpg)
The pipeline industry in the USA faced and still faces a range of regulatory challenges, including permitting delays, environmental requirements, and public opposition to pipeline projects. In recent years, pipeline projects like the Keystone XL and Dakota Access pipelines had legal and regulatory obstacles that delayed or canceled their construction. Keystone XL Pipeline, proposed by TransCanada in 2008, aimed to transport crude oil from Canada (around Calgary and Edmonton) to refineries on the Gulf Coast (Port Arthur). The project faced opposition from environmental groups and indigenous communities, who argued that it would contribute to climate change and pose a risk to water resources. In 2015, President Obama rejected the project, citing concerns about its environmental impact. However, in 2017, President Trump revived the project, leading to further legal challenges. In June 2021, U.S. President Joe Biden officially canceled the project on his first day in office.
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The renewable natural gas (RNG) industry in the United States is showing promising signs of growth. As of 2019, the U.S. consumed 261 billion cubic feet (BCF) of RNG, primarily utilized by independent power producers, electric utilities, and various commercial and industrial entities. However, this figure represents only a small fraction of its potential. Research indicates that the U.S. could theoretically produce up to 2,200 BCF of RNG through anaerobic digestion alone, which would equate to about 11% of daily national natural gas consumption.
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Recently, the progress toward an energy transition is hitting a snag. Sales of electric vehicles are decelerating, and the growth in wind and solar power needs to be keeping pace with expectations. To make matters more challenging, electricity prices are climbing when they were expected to fall. Amidst these setbacks, the oil and gas sectors are proving resilient. According to BP's latest energy outlook, not only are these energy mainstays here to stay, but their demand is expected to remain relatively high even after reaching a peak. Interestingly, BP forecasts that oil demand will reach its zenith next year, marking a critical moment in energy consumption trends. This isn't the first time BP has projected a peak in oil demand. Back in 2019, their review anticipated a decline in demand growth, but the prediction fell flat. Instead, oil demand surged to unprecedented levels following the end of the global pandemic lockdowns, defying previous forecasts and underscoring the enduring dominance of traditional energy sources in the global market.