Link here.
Surge Energy Inc. is pleased to announce the acquisition of adjoining Spearfish light oil assets in Bottineau County, North Dakota through two key transactions (the "Acquisitions"). The Acquisitions more than double the Company's net unbooked Spearfish light oil drilling inventory by adding 205 gross (120 net) horizontal drilling locations. The Acquisitions also include a high working interest, contiguous undeveloped land base of more than 100,000 acres that is exploratory in nature and prospective for light oil in the Basal Spearfish and the Madison Formations.The press release is one of the more detailed press releases I've seen regarding an oil patch transaction.
Data points later, perhaps, but the link will take you there.
This combined with information on today's daily activity report suggests the Spearfish formation in Bottineau is about to get real busy.
I've looked several places to see from whom Surge may have purchased the Spearfish and Madison wells in northern North Dakota, but unable to find any specific answers. The scuttlebutt is Surge acquired the mineral acres from EOG. It had to be a pretty big operator: one of the two acquisitions involved 108,000 acres.
3 EOG wells produced in December, averaging a combined 63+ BO/day.
ReplyDelete108,000 acres is about right for EOG ND Spearfish play acreage.
Legacy has acreage but no 2010 production.
Thus, bet on EOG selling and Legacy/Surge being the dominant ND Spearfish players. They also both recently bought into the Canadian Spearfish. They invested a lot in the Spearfish in a year.
Legacy is completing their 5 ND Spearfish wells.
The Surge buy suggests that Legacy likes what it saw in some of those wells. Their results will be a clue about the expanse of the good stuff.
Thank you.
ReplyDeleteYes, Surge Energy has made a huge bet on the Spearfish.
In the NDIC April docket, Surge Energy (Corinthian) will be looking to drill 204 wells in Bottineau County.
http://milliondollarway.blogspot.com/2011/04/corinthian-souris-spearfish-bottineau.html