CLR To Purchase 37,900 Net Acres in the Bakken -->953,763 Net Acres in the Bakken for CLR

From In-Play -- will disappear later today.

7: 02AM Continental Resources to Purchase 37,900 Net Acres in the Bakken Play With 2.5 MBoe Average Daily Production for $340 mln:The purchase price of $340 mln is anticipated to result in the issuance of between 3.90 mln and 4.25 mln shares of Continental Resources' common stock, subject to customary purchase price adjustments. The number of shares will be determined based on a 20 day average of the daily sale prices prior to closing of the transaction. The average daily price determination will be subject to a floor of $80.00 per share and a ceiling of $87.18 per share. Wheatland's assets include 37,900 net acres in the North Dakota and Montana Bakken play and interests in more than 1,000 gross wells, with net proved reserves of 17 MMBoe (mln barrels of oil equivalent) as of year-end 2011 and production of 2.5 MBoepd (thousand barrels of oil equivalent per day) in December 2011.

Reuters link here. 

The assets include 37,900 net acres in the North Dakota and Montana Bakken play and interests in more than 1,000 gross wells. The assets produced 2.5 thousand barrels of oil equivalent per day as of December 2011.

Continental said it expects to issue between 3.90 million and 4.25 million shares to fund the purchase price.

Net acreage approaching 1 million acres in the ND and MT Bakken. 

Back-of-the-envelope data points:

• $9,000/acre without the 1,000 gross wells.
• Based on reserves: $340 million/million bbls --> $20/bbl based on reserves
• 2,500 boepd * $50/bbl --> $125,000/day on current production (production declines; price of oil varies); one year --> $46 million

According to Elwood, elsewhere:

'Wheatland is owned 75% by the Revocable Inter Vivos Trust of Harold G. Hamm, of which Harold Hamm is sole trustee and beneficiary, and 25% by Jeff Hume. Mr. Hamm is Chairman of the Board, Chief Executive Officer and the majority shareholder of Continental Resources. Mr.  Hume is President and Chief Operating Officer of Continental Resources.' 

Elwood opines (at the link): CLR could be "positioning" for acquisition.

The question is raised: would Harold Hamm have to put in blind trust/divest of CLR if he takes cabinet position in new administration?