Shannon Sandstone
Marine Shelf Sand Above the Niobrara in Wyoming's Powder River Basin
Location
Key Reservoir Properties
Late Cretaceous (Campanian)
Fine to medium-grained marine sandstone
7,500 - 10,500 ft
12-18%
36.0° API
Executive Summary
The Shannon Sandstone is a Late Cretaceous (Campanian) marine shelf sand within the Cody Shale of Wyoming's Powder River Basin. It lies above the Niobrara Formation and below the Sussex, Parkman and Teapot sands, and like them it is charged mainly by the Mowry Shale source rock beneath the section. The Wyoming State Geological Survey lists the Shannon and Sussex members of the Cody Shale among the basin's unconventional reservoirs, though not among the five most productive in 2024 (those are the Frontier, Niobrara, Parkman, Turner and Mowry).
The Shannon is best understood as a secondary, shallower target that adds a completion zone to pads already drilling the Niobrara and Turner. That is how it appears in Kingdom Exploration's current Powder River program: two wells in the proven Niobrara and a third in the Shannon above it, all from one pad.
The free 2026 Oil & Gas Investor Tax Guide — how the year-one deduction, depletion and working-interest rules actually work, plus oil briefs from Sean's desk. No call required.
Free. Unsubscribe anytime. We never share your email.
Historical Background
Shannon production began with conventional vertical wells in higher-permeability shelf sand bodies and has continued for decades. The federal Table Mountain Unit in Johnson County, operated by Prima Exploration, still produces from the Shannon through a mix of conventional and horizontal wells under waterflood. Horizontal drilling has extended the productive footprint into tighter parts of the sand, usually as part of multi-zone pad development rather than as a standalone program.
Geological Characteristics
The Shannon Sandstone Member of the Cody Shale was deposited in a marine shelf environment during the Campanian age. The formation comprises fine to medium-grained sandstone with interbedded marine shales indicative of fluctuating water depths and sediment supply.
The Shannon is commonly developed with the Sussex Sandstone, which lies stratigraphically above. Both formations represent marine sand bodies encased in organic-rich Cody Shale.
Reservoir Properties
Shannon sandstones exhibit moderate reservoir quality with porosity of 12-18% and permeability of 0.1-5 mD. Higher permeability zones can be prolific producers while tighter intervals require stimulation.
Oil gravity ranges 36-44 API with moderate solution gas. The marine depositional setting creates laterally continuous sand bodies favorable for horizontal development.
Production History
Shannon output is incremental to the basin's main zones. Public reporting does not break out Shannon-only volumes; the Wyoming State Geological Survey groups it with the other Cody Shale sands as an unconventional reservoir outside the 2024 top five. Horizontal Shannon wells are typically drilled alongside Niobrara or Sussex wells so that one pad, one set of tanks and one pipeline tie-in serve several zones.
Drilling & Completion Economics
Because the Shannon is shallower than the Niobrara and Turner, a Shannon lateral is less expensive to drill than a Niobrara lateral from the same pad. Operators do not publish per-well Shannon costs. Basin-wide, two-mile laterals are standard and completions average more than 2,000 pounds of proppant per lateral foot (Enverus). The practical advantage is shared infrastructure: where a pad already has production facilities, a Shannon well sells oil from first production without new surface investment.
Production Decline Analysis
The Shale Decline Reality
While industry headlines tout record production, the underlying data reveals a critical truth: shale wells experience dramatic production declines that require constant drilling just to maintain output. This creates a "treadmill" effect where massive capital expenditure is needed simply to prevent production collapse.
Industry Expert Analysis
"New wells drilled in 2023 may ultimately produce roughly half of what new wells from 2019 will ultimately produce. The industry is sacrificing future production to maximize short-term output."
— Art Berman, Petroleum Geologist (40+ years experience)The Lateral Length Paradox
Since 2014, the industry has nearly tripled average lateral lengths from 5,000 ft to 14,000+ ft. While this increases initial production rates, it also accelerates decline—effectively using "wider straws" to drain reservoirs faster.
Key Investment Considerations
Decline Risks
- Hyperbolic Decline: 65-75% production loss in year 1 (vs 5-6% for conventional)
- Child Well Problem: 85% of new wells produce less than expected
- Inventory Exhaustion: Tier 1 acreage running out within 3-5 years
- Treadmill Economics: Continuous drilling required just to maintain output
Counter-Perspectives
- Technology continues improving operational efficiency
- Infill drilling potential may extend productive life
- Multi-zone development can maximize recovery
- Higher commodity prices improve economics on marginal wells
Decline Analysis Data Sources
- IEA - International Energy Agency, "The Implications of Oil and Gas Field Decline Rates" (2024)
- EIA - U.S. Energy Information Administration, Production Decline Curve Analysis
- SPE/JPT - Society of Petroleum Engineers, "Shale Wells Producing More Early On, Then Declining Faster Than Ever"
- Art Berman - Petroleum Geologist, artberman.com - Shale decline analysis
- David Hughes - Geoscientist, Post Carbon Institute - Shale production studies
- Goehring & Rozencwajg - Natural Resource Investors, Permian Basin analysis
- Novi Labs - Delaware Basin and shale well performance data
Economic Analysis
Shannon economics rest on cost sharing rather than headline rates. A shallower target drilled from an existing pad carries a lower cost than the Niobrara well beside it, so a modest producer can still pay out. The trade-off is reservoir quality: the Shannon is a conventional-style marine sand with more variability in thickness and permeability than the Niobrara, so results depend more on local sand development. Enverus's basin breakeven range of roughly $55 to $65 a barrel applies to the Niobrara and Mowry; the Shannon is not separately benchmarked.
Remaining Potential & Future Opportunities
The Shannon will continue to be developed opportunistically as a stacked-pay zone wherever Niobrara and Turner pads make it cheap to add. Its lateral continuity as a shelf sand supports horizontal development, and waterflood experience at Table Mountain shows the sand responds to secondary recovery.
Conclusion
The Shannon Sandstone is a supporting act in the Powder River Basin: not a play driver, but a shallower, cheaper zone that improves pad economics when it is drilled alongside the Niobrara. In a program that already has a proven Niobrara well, pad and pipelines in place, a Shannon well is the lower-cost, higher-uncertainty third leg.
Data Sources & References
- Wyoming State Geological Survey, Powder River Basin oil and gas summary (citing WOGCC 2025)
- American Oil & Gas Reporter, Rockies operators feature (September 2024): Table Mountain Unit
- Cowboy State Daily reporting on Enverus analysis (January and November 2025)
- USGS, Anna and Cook (2008), Powder River Basin continuous hydrocarbon systems assessment
Important Disclaimer
This geological review is provided for educational and informational purposes only. The author, Sean Pruitt, is not a licensed geologist. Information presented here has been compiled from publicly available sources including USGS reports, state geological surveys, academic publications, and industry data. Reservoir properties and production data represent ranges observed across productive areas and may vary significantly by location. Kingdom Exploration makes no representations or warranties regarding the accuracy, completeness, or reliability of this information for any specific purpose. This content does not constitute investment advice, geological consulting, or professional engineering recommendations. Investors and operators should conduct their own due diligence and consult qualified licensed professionals including petroleum geologists, reservoir engineers, and financial advisors before making any investment or operational decisions.