Fuel supply

100 MMcf/d, produced on the property

Most sites answer fuel supply with a pipeline distance and a letter from a midstream company. Pronghorn answers it with a production report. The gas comes out of this position and the Energy Park sits on top of it.

100 MMcf/dProduced today, targeting 120 MMcf/d by year-end
2 TcfReserves supporting 1 GW for 25 years
3,363Producing wells of 5,241 operated
3,010 miGas gathering in service
Supply

No fuel contract, no basis, no reservation charge

A merchant generator buys gas at a hub, pays to move it, pays to treat it, and carries the basis between the hub and the burner tip. Every one of those is a counterparty and a price exposure, and every one gets renewed on someone else’s terms.

Production diverted to the Energy Park never enters that chain. It is taken upstream of the gathering system and burned on the property it came out of. No sales pipeline in the path, no hub, no minimum volume commitment to a midstream provider, and no firm transport to reserve years ahead.

The avoided cost. Each Mcf burned on site avoids about $0.55 of gathering and compression and $0.20 to $0.36 of treating. That cost is never incurred, because the molecule never enters the chain.

Coalbed methane also behaves differently from shale here. The wells are shallow, unstimulated and long-lived, with a shallow decline instead of a steep first-year drop. A generation fleet underwritten against this production is underwritten against a flatter curve.

Fuel supply diligence
Fuel ownershipPronghorn, 100%
Third-party fuel contractNot required
Firm transport reservationNot required
Basis exposureNone, no purchase
Minimum volume commitmentNot applicable
Gas qualityBiogenic, unstimulated
Methane intensity0.13%
Decline profileShallow, CBM
Third-party headers1.5 mi, bidirectional
Field compressionOperating today
Midstream

Two headers, either direction

The Energy Park is fed upstream of the gathering system, so midstream access is not a dependency for power. It is a second route to market for gas the campus does not burn, and a route in if a counterparty wants supplemental supply on paper.

1.5 miles

Western Midstream, Bighorn

A gathering header reaching the Energy Park from the north, with gathering, processing and market access beyond Pronghorn’s own system.

1.5 miles

Fort Union Gas Gathering

A second header reaching the same point from the southeast, giving an independent path and sales redundancy.

1.2 miles

Deadhorse interconnect

Interstate access from the position, with the Bison Pipeline 2.4 miles from the site. Kinder Morgan operates gas treatment and gathering across the basin.

Bidirectional matters commercially. Two independent headers at the same distance mean the Energy Park is captive to neither. Gas the campus does not burn can be sold through either one, and supplemental third-party gas can come in through either one if a contract calls for dual-source fuel.

Regulatory classification. Fuel moving from Pronghorn wells to Pronghorn on-site generation across the Pronghorn leasehold does not implicate FERC-jurisdictional interstate transportation. Supplemental third-party gas, if elected, runs through the existing headers under the normal midstream framework. Both structures should be confirmed with counsel against the final commercial form.

Resource depth

The arithmetic behind 25 years

1 GW of continuous generation consumes about 228 MMcf/d, or about 2.08 Tcf across 25 years. Pronghorn holds 2 Tcf of reserves. That is the whole basis for the gigawatt statement, and it takes field development to get there.

The development inventory is conventional field work, not exploration: wells returned to production, recompletions into behind-pipe coal seams, and new drills against a known type curve on acreage already held, already permitted and already served by infrastructure.

  • Return to production. Shut-in wells on producing units restored to flow
  • Recompletion. Additional coal seams opened in existing wellbores
  • New drill inventory. Permitted and identified locations on held acreage
  • 98% held by production. No lease expiry driving the sequence
Commodity strategy

Fuel priced as a cost of production

Fuel enters the power price as an internal cost. That makes the power price structurally steadier than a gas-purchasing merchant plant can offer, and it makes a long-tenor fixed or indexed power price underwritable.

A counterparty that wants commodity exposure can have an index-linked fuel component. A counterparty that wants none can have a fixed all-in power price for the term. The election sits with the offtaker, because Pronghorn is not hedging a purchase.

Pricing structure, tenor, escalation and the treatment of fuel within the power price are commercial terms addressed in a term sheet and are not published here.

Next step

A load profile is enough to begin.

Send target megawatts at first energization, a ramp schedule and a cooling approach. Pronghorn returns a generation block plan, a field development sequence, a water allocation and a term sheet across power, land and fuel. Capital and structure inquiries reach the same team.