Chesapeake, Pronghorn agree to shale sand contract in Wyoming

By Luke Geiver | November 28, 2018

Founded by a group from two different major energy service and hydraulic fracturing firms, Pronghorn Energy is now in the frack sand management and logistics business. The Denver-based company announced this week a new agreement with Chesapeake Energy to supply the Oklahoma City shale gas producer with frack sand logistics, wellsite operations and management services.

Pronghorn was created by former members of RockPile Energy Services and Keane Energy Group. The company is currently active in the Bakken, Midcontinent, Powder River Basin and Green River Basin.

For Chesapeake, Pronghorn will provide sand management, logistics and wellsite services for the E&P’s Wyoming Powder River Basin operations. In 2019, Chesapeake believes its oil production in the PRB will double. The company believes it has stacked pay zones across its acreage that produces a 41 percent oil cut, 42 percent natural gas cut and 17 percent cut of NGLs per boe. With a focus on the Turner formation, the company intends to do other tests next year on the Niobrara and Parkman formations followed by appraisals for the Teapot, Parkman, Sussex, Frontier and Mowry formations in 2020.

Dirk Hallen, CEO of Pronghorn, said the company intends to help Chesapeake’s completion efforts by reducing the landed cost of frack sand into the blender.

Hi-Crush Partners will supply Chesapeake Energy with sand for its 2019 PRB completion operations. 

Anadarko Petroleum and EOG Resources have also spoke openly about their plans or positivity regarding the Powder River Basin in separate investor calls this month.