Governor Mark Gordon announced that 290 oil and gas projects will be funded through the Energy Rebound Program, providing thousands of energy industry jobs in Wyoming over the next year.
With the number of qualified applications for the program exceeding the original $15 million allocation, Governor Gordon transferred an additional $15 million in funding to the program for a total of $30 million. The additional CARES Act dollars came from programs with leftover funds that could be repurposed.
Company estimates provided on application paperwork indicated that these projects will provide over 5,500 jobs in Wyoming and will produce over $150 million in oil and/or natural gas over the next year. Sixty-five companies applied for projects determined eligible to receive funds. Companies were limited to a cap of $500,000 per project. In addition to drilled but uncompleted wells, each company could receive funding for up to 5 recompletions or workovers, and 5 plugging and abandonment of wells that are no longer producing.
“The results of this program show the willingness of the oil and gas industry to put people to work in Wyoming, once they get some capital to get them going,” said Business Council CEO, Josh Dorrell.
The funded projects represent projects that were planned, but unable to be completed due to the COVID-19 pandemic. The projects include 18 drilled but uncompleted wells, 130 recompletions or workovers and 142 plugging and abandonment of wells that are no longer producing.
“This is a great and appropriate use of CARES ACT money to respond to the devastating effects of the pandemic on our economy. The oil and gas operators responded quickly and they need to act quickly in the near future.” said Randall Luthi, Chief Energy Advisor to Governor Gordon.
Under the federal restrictions, these CARES Act funds can only be used to pay for goods and/or services provided by the end of the year.