Monday, December 30, 2013

Maybe Someone Else Wants To Do The Math ....

Rigzone is reporting:
Vanguard Natural Resources, LLC  has entered into a definitive agreement to acquire natural gas and oil properties in the Pinedale and Jonah fields of Southwestern Wyoming for a purchase price of $581 million from an unnamed source. The properties being sold consist of approximately 87,000 gross acres (14,000 net acres) that are currently producing approximately 113.4 million cubic feet equivalent per day (MMcfe/d) with approximately 80 percent being natural gas, percent oil and 16 percent natural gas liquids. The effective date of the acquisition is Oct. 1, and the Company anticipates closing this acquisition on or before Jan. 31, 2014. 
$581 million / 14,000 net acres = $41,500/acre.

Also, at the press release:
Approximately 2,000 producing wells and over 970 proved undeveloped drilling locations; there are approximately 5,200 additional locations not booked at this time due to the current expectation that they will not be drilled within a five year period as required by the SEC for recording proved reserves.

2,000 + 970 + 5,200 = 8,170 / 14,000 net acres = 8,170 drilling locations / 14,000 net acres. 

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