Acquisition metrics for Powder River Basin project.
Powder River Basin
The acquired Powder River Basin acreage is located to the south of Devon’s legacy position in Wyoming and includes production of 7,000 Boe per day, with approximately 85 percent oil. This leasehold resides in the core of the Powder River oil fairway and is most prospective for the Parkman, Turner and Teapot formations. The contiguous acreage allows for extended-reach horizontal drilling and the Company has conservatively identified 500 development-ready locations with potential for as many as 2,700 unrisked locations as appraisal drilling further derisks multiple formations in the oil fairway.
After deducting the value of current production at $30,000 per flowing barrel and $100 million of midstream infrastructure, Devon secured the undeveloped leasehold at roughly $1,100 per acre.