Update
June 27, 2011: Dakota-3 LLC is a subsidiary of WMB.
Original Post
Link here.
Reported earlier, but I think this is first time that I saw the seller listed as Dakota-3 LLC.
Maybe it was there the first time, and I just forgot. Yes, here it is, my original posting on this purchase, and at the time, the seller was listed as "private." The acreage represents seven (7) percent of the Fort Berthold Indian Reservation.
Anyway, 85,800 acres and assets for $925 million cash. Assets include three rigs; Williams plans to have six rigs by end of 2012. Acreage alone, that works out to about $11,000/acre -- but of course the assets have to be considered. But $11,000/acre is in the ballpark of $5,000 to $12,000/acre in this part of the Bakken.
Coastal Caribbean has about 8,000 acres in this part of the Bakken and market cap for that company is $3 million. I'm doing this from memory, so I could be wrong. Update: I am wrong; see comments below. An undated Coastal website says it has 8,000 acres in North Dakota (well down from the 25,000 acres it said it had in 2005; in addition, other than saying the acreage is in southwestern North Dakota, I have no additional information where it may be located. If I remember, I will remove this entire paragraph in a few days since it has nothing to do with the Williams acquisition.
(So, the obvious question is: who was backing Dakota-3 LLC to begin with? Williams?)
I am not able to find confirmation that Coastal Caribbean has 8000 acres in "this part of the Bakken". Can you share where you found this information?
ReplyDeleteThank you for catching me on this one / bringing it to my attention. I have not seen a map of Coastal's holdings in North Dakota. The website simply states the North Dakota acreage is in southwestern North Dakota. In addition, the Coastal websites are infrequently updated and even the total number of acreage may be out of date.
ReplyDeleteI will update my blog postings accordingly. Thank you for bringing this to my attention. By the way, back in 2005, according to Coastal year-end statement, it had 25,000 acres in North Dakota and 100,000 acres in Montana. They've sold a lot of acres since then and that explains how they've raised cash.
Robert Zinke of Zenergy Inc. was the driving force behind this entire deal. D3, or Dakota Three is comprised of Zenergy, Och Ziff, and SLB. Och Ziff bank rolled the the entire project four years ago by investing around $90 Million, and Zenergy made the deal happen.
DeleteNow a subsidiary of WPX; bought December, 2010, I believe.
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