Welcome to Black Hills Exploration and Production
Black
Hills Exploration and Production, the oil and gas subsidiary of Black
Hills Corporation operates 516 oil and gas wells in Colorado, Nebraska,
New Mexico, and Wyoming. The company owns a non-operating working interest
in a total of 480 wells located in California, Colorado, Gulf of Mexico,
Louisiana, Montana, North Dakota, Oklahoma, Texas, and Wyoming.
Natural Gas and Oil Production
- Development and acquisition strategy focuses on long-lived gas reserves.
- 174 BCFE reserves at year-end 2004, with natural gas comprising 79 percent of total reserves.
- 2004 production – 12.6 BCFE – was the seventh consecutive annual record and a 16 percent increase over the previous year.
- Production is concentrated in New Mexico, Colorado and Wyoming, with additional production in Montana, North Dakota, Nebraska, Oklahoma, Louisiana, Texas, the Gulf of Mexico and California.
Oil and gas production expands again
Our oil and gas operations increased production for the sixth year in
a row. Spurred by the acquisition of Black Hills Gas Resources, Inc.,
total production in 2003 was 12.6 BCFE, a 16 percent increase over the
previous year. The Black Hills Gas Resources properties are comprised
almost completely of natural gas; consequently, gas production was 79
percent of total production, compared to 77 percent in 2003. Total proved
reserves at year-end 2004 were 174 BCFE, 82 percent of which is natural
gas. Prevailing prices for oil and gas were strong for most of 2004, and
financial results reflect that strength.
Most of Black Hills Gas Resources production and reserves are located
in northern New Mexico in the San Juan Basin. We are pleased with the
cooperative working relationship we have established with the Jicarilla
Apache Nation, on whose land our program is primarily based. An active
drilling program is expected to progress for a number of years to come
– not only based on the strength of existing reserves, but also
on our belief that additional reserves may be discovered in deeper, under-explored
horizons.
Black Hills Exploration and Production has a total of almost 60 full-time
employees with half in Golden, CO, where engineering, geology, land and
accounting personnel reside. Production employees are located at the Finn-Shurley
Field office, and at the East Blanco Field office, including roustabouts,
rig workers, pumpers, clerical and supervisors.