Link here to SeekingAlpha.com.
.... just after our October article, Halcon disclosed a large producing
asset buy in the Williston Basin. Management added 81,000 net acres in
Williams, Mountrail, McKenzie, and Dunn Counties, North Dakota for
$1.45B. The company basically bought a swath of acreage across the heart
of the play with several sweet spots included. Backing out the 10,500
BOEpd of current production at a conservative $80,000 per flowing BOE
yields a modest adjusted acquisition price of $7,500 per net acre.
This is cheaper than operated peer Kodiak
(currently valued at roughly $15,900 per production adjusted acre using
3Q volumes) and interesting since a chunk of the new acreage that will
see HK rigs next year is in the FBIR where KOG points to much higher
than Basin average EURs and where QEP recently paid roughly $21,000 per production adjusted acre.
Incredible article on Halcon. Go to the link for the entire story.
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