CLR Building A Position In The Powder River Basin, Wyoming -- January 25, 2022

Re-posting. Huge story.

With free cash flow, Harold Hamm and CLR are building positions in the Permian and the Powder River Basin in Wyoming. 

CLR is tracked here. 

From that link, selected data points:

• January 25, 2022: CLR acquires 172,000 net acres in Wyoming, Powder River Basin, for $2,600 / acre. 
• November 6, 2021: CLR enters the Permian.
  
• August 6, 2021: CLR will be drilling an exploratory well in Vernon Parish, Louisiana, target Austin Chalk, just west of TMS.
  
• February 17, 2021: CLR acquires 130,000 net acres in Powder River Basin, Wyoming, for $215 million, all cash deal.

The Powder River Basin deals:

• January 25, 2022 $2,600 / net mineral acre
• February 17, 2021: $1,600 / net mineral acre

Back of the envelope, Powder River Basin acquisitions:

• the "Samson" deal, see below:
• $215 million / 130,000 net acres = $1,600 / acre
• $215 million / 9,000 flowing boepd = $24,000  flowing boepd
• the "Chesapeake" deal:
• $450 million / 172,000 net acres = $2,600 / acre
• $450 million / 19,000 boepd = $24,000 / flowing boepd

The "Samson" deal:

From a reader:

This whole Powder River Basin would be a great place for CO2  -- carbon capture and storage -- so maybe they are buying u p federal property to get tax credits from Biden and CO2 deals.  There are two or three huge lignite-to-electricity plants in Gillette, Converse County. 

My reply: 

Great catch about CCS. Thank you.

Yes, the faux environmentalists are already upset that Big Oil is making money off global warming by getting credits, incentives for CCS.

Yes, CLR needs to "ESG" bullets and saying they're turning Wyoming into a CCS play could be brilliant.

By the way, they used to call this "carbon capture and sequestration" but the fourth word in that phrase was a bit too "stuffy," so they changed it to "storage." The acronym, CCS, remained unchanged.