Crowheart, Williams create Wamsutter field joint venture

Crowheart Energy, Denver, and Williams finalized an upstream joint venture in Wamsutter field of the Greater Green River basin in Wyoming that consolidates legacy BP, Southland, and Crowheart upstream assets.

Crowheart—founded in 2017 in partnership with Madava Group and private investors to acquire and develop operated assets in the field—will operate the consolidated upstream assets while Williams will continue to operate and retain full ownership of its midstream assets. Williams also will retain real estate, surface, and other rights designed to enable further expansion of midstream and renewable energy opportunities in Wyoming, Williams said in a July 6 statement.

The consolidated assets include over 1.2 million net acres, over 3,500 operating wells, and more than 3,000 potential development locations, Williams continued.

Initially Williams and Crowheart will own 75% and 25% respective interests, although Crowheart may increase its ownership through performance under a development program.

Williams retains control of the selection and pace of operations pursued, and the ability to exit its upstream ownership position.

Upstream assets will be subject to a single, expanded fixed fee gathering and processing agreement, eliminating commodity price sensitive contracts while combining numerous existing agreements into a simplified structure, Williams said.

NGL volumes from each of the legacy upstream assets will be combined and dedicated to Williams, adding transportation volumes on Overland Pass Pipeline (OPPL) and Bluestem, and increasing downstream fractionation volumes at attractive rates, the company continued.

Residue gas from the assets will be aggregated for downstream marketing and transportation.