The Powder River Basin, where several Oklahoma energy companies have established a foothold in oil and gas exploration continues to get publicity over becoming the next big oil play in the U.S.
Some of those Oklahoma firms, such as Rebellion Energy of Tulsa paid millions for acreage in Wyoming. One report indicated Rebellion plunked down $100 million for 19,000 acres while Vermilion Energy acquired 55,000 acres for $150 million.
Rebellion’s previous strong activity had been in the Eastern Anadarko Basin, according to its website. The $100 million payment is a big jump for the company founded alongside Natural Gas Partners in 2015 by Staci Taruscio who serves as President and CEO.
Why the Powder River Basin? Many contend it’s because of the major oil pipeline problems in the Permian Basin of Texas and New Mexico. In the Powder River, explorers find land prices are lower and there isn’t the challenge of finding enough pipelines to move the crude oil they discover.
With oil prices up 50 percent in the past year, interest has grown in the Powder River Basin. Plus, there is the possibility of Colorado just to the south of putting mandatory 2,500-foot buffer zones between oil and gas wells and dwellings. Voters will decide this fall and if the larger buffer zone becomes law, it could drive drillers out of state.
