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Operations

Rocky Mountain Projects in the Washakie Basin, Wyoming

Coalbed Methane Natural Gas

The Washakie Basin is located in the southeast portion of the Greater Green River Basin in southwestern Wyoming and represents our largest acreage position. As of December 31, 2013, we owned 111,765 gross (86,415 net) acres prospective for CBM development in this area, of which 67,953 net acres are undeveloped. This area contains approximately 175 gross identified drilling locations, primarily on 80-acre well spacing.


Coalbed Methane Compared to Traditional Natural Gas

The primary component of commercial natural gas is methane. Methane can also be found in coal deposits, as it is created by the same biological and geological forces that transform organic material into coal. Methane is stored in coal seams in four different ways:

  • as freely trapped gas within the pore spaces and natural fractures of the coal;
  • as dissolved gas in the water within the coal seam;
  • as adsorbed gas on the surface of the coal; and
  • as adsorbed gas held within the molecular structure of the coal itself.

Methane stored in coal deposits by all four of these methods is released upon the removal of water from coal seams. The removal of water reduces the amount of pressure on free and dissolved gas in the coal allowing it to be produced. As a result, coalbed methane wells typically produce significant amounts of water when they are first drilled, often for the first one or two years of a generally projected eight to twelve year well life. During this de-watering phase, water production typically decreases while gas production typically increases. After this initial production phase, gas production typically declines over the remaining producing life of the wells.

Coalbed Methane Gas Prospects

While traditional natural gas wells and coalbed methane wells require largely the same infrastructure and produce the same end product, coalbed methane production differs from traditional natural gas production in the following ways:

  • Other than dehydration and compression, coalbed methane typically needs no other processing after extraction prior to entering a pipeline, reducing production costs;
  • Although certain structural features such as fractures enhance production of coalbed methane, such structural features are generally not necessary for production, making the discovery of coalbed methane reserves less expensive;
  • Methane bearing coals exist at much shallower depths than the formations that traditionally contain natural gas, allowing coalbed methane to be produced from shallower wells using more readily available equipment, such as water well rigs, thereby reducing drilling costs; and
  • Since the location of coal seams is typically known through prior mining activity or from data provided by existing wells drilled to deeper formations, extensive geophysical or seismic data is not required to drill a coalbed methane well.

Atlantic Rim

Atlantic Rim: Midstream Assets Pipeline Map

Warren owns 100% of the gathering line to CIG after acquiring Anadarko’s 50% interest in October 2012. Owning the gathering line has allowed Warren to lower its LOE’s in the Atlantic Rim.


Atlantic Rim: Midstream Assets Pipeline Map


Oil and Gas Deep Potential

Warren owns deep rights below its Atlantic Rim project which includes an approximate 71,000 net acre position that is potentially prospective for the Niobrara Shale. The acreage is located in the eastern Washakie Basin in Wyoming. Warren estimates that its Niobrara Shale formation is at depths of 4,000 to 10,000 feet. Successful Niobrara Shale oil wells that have been developed in southern Wyoming and northern Colorado are typically drilled horizontally with multiple-stage fracturing.

  • Owns certain deep rights in a portion of the Atlantic Rim area
    • ~71,000 net acres potentially prospective for oil bearing formations including:
      • Shannon (oil)
      • Sussex (oil)
      • Niobrara (oil)
      • Frontier (gas)
      • Dakota (gas)
  • Niobrara interval at depths between 6,000-8,000 ft. across trend
  • Analogous to Denver-Julesburg and Powder River Basins

Atlantic Rim: Deep Potential

 

 
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