First it was BEXP. Then it was CLR. Now it's WLL.
Late yesterday, WLL announced a $350 million senior note offering.
Last week BEXP and CLR both announced similar offerings.
[Now, just to be catty, will KOG announce a similar offering? Smile.]
This speaks volumes about a) the eagerness for companies to expedite their drilling programs; b) anxiety over losing permits about to expire; c) losing leases to others top leasing; and, d) probably, the cost of super-fracking.
Hess in the presentation they did Sept. 16 at Barclays Capttal said they are investing $1 to $1.2 billion per year for the next 5 years in the Bakken.
ReplyDeleteKOG did file S-3 this morning on $250 million mixed shelf.
ReplyDeleteERF announced this morning the acquisition of 46,500 net acres in the Fort Berthold area. They paid a price of $9,800 per acre. Incredible! At that price what is KOG NAV?
I had forgotten the exact numbers but unless I'm missing something, there are some interesting things going on in the Bakken right now. And, for me, the Bakken has always been interesting, so it begs the question: I wonder what really is going on?
ReplyDeleteWith regard to KOG NAV in light of ERF's acquisition, someone sent me a note suggesting that this puts KOG's acreage value at more than $550 million. Acreage only; this does not include other KOG assets, current production, etc. KOG controls 55,400 net acres according to that note. With that one can do the math. I did not check the numbers but the source is reliable.
ReplyDeleteBy the way, I think all this action helps explain why shares in Bakken companies continue to rise despite the price of oil trading in a narrow range, and possibly even dropping a bit. The "smart money" knows that something is going on.
ReplyDeleteAgain, I can't stress enough that NDIC estimates EURe of 700,000 bbls (plus/minus) per section in the "good" Bakken. Oil companies are now putting three, four and five wells in one section in "good" Bakken locations, and the oil companies suggest that these wells have EURs of 700 - 900,000 bbls.
Nobody should trust my figures; I often get things mixed up, but there are plenty of sources to check out these EURs and various estimates. I am not making any investment recommendations. This is just idle, but very interesting, chatter.