Monday, December 7, 2015

Devon To Buy 80,000 Net Acres In STACK - Anadarko Basin -- December 7, 2015


December 7, 2015: a reader just sent me a note telling me he received a very nice offer for his minerals up in the Bakken. He says a lot of landmen and others are trying to buy mineral acres "on the cheap" citing slump in oil prices, etc. Just a word of caution: apparently "good" Bakken is still going for nice rates; be very, very careful in this environment if you are a seller.

Original Post 

Devon to buy Anadarko assets. Last night I gave sixteen reasons why Saudi Arabia won't win. Today it is announced that Devon is buying 80,000 acres in the STACK for $1.9 billion and

This was "predicted" on Saturday by Zacks.

Now, the announcement in Reuters: $1.9 billion / 80,000 acres, STACK in Anadarko Basin ($23,750 / acre).

Press release. To include 253,000 net acres in the Powder River Basin for $600 million ($2,400 / acre).

The press release also noted this transaction also announced today:
In a related transaction announced separately today, EnLink Midstream agreed to acquire Tall Oak Midstream, a portfolio company for EnCap Flatrock Midstream, for $1.55 billion. Tall Oak’s gathering and processing assets are strategically located in the core area of the STACK play and the vast majority of the Felix acreage position is dedicated to this midstream infrastructure.
Active rigs in North Dakota:

Active Rigs64188193181200

RBN Energy: very good operational look at the KMI - NGPL deal. Will be archived.

Tweeting now: November crude oil exports hit record 3.365 mil b/d, up 24% from October, 2015.

Solar Load Factor

Load factor: the ratio of the average or actual amount of some quantity and the maximum possible or permissible.

For solar, 9%:
December 7, 2015: From a reader who is researching solar to include the links above provided this assessment, all of which makes sense to me:
My curiosity is the long term abrasion and chemical attack caused by repeated cleaning of the panels due to dust, dirt, and bird excrement. I rather suspect that panels manufactured after 2010 have benefitted from the millions of panels manufactured before then that have pre-maturally failed. These new systems should be able to provide reliable service at an average of up to 40% of the 50% of their maximum output during the time the sun shines....if installed in a near ideal location.
My minimal early research indicates that for the latitude from about San Fransisco to San Diego and east to about Kansas City/ Dallas (lots of sun, good sun angle, few clouds, not an awful lot of lightning, except toward the east end of the "band") provides the least horrible sites.
The payback is reportedly about 17 years,assuming full capture of the 30% federal tax credit, and the reported 1%/yr efficiency loss at inflated PG&E rates. Also, I rather suspect China is selling these things for < than cost - they have a huge labor force to keep "busy."
Installing solar panels anywhere is stupid, the world would be a better place without them (except for the really handy < 1KW systems for select applications). Installing them in cold and or cloudy sites at high latitudes for heating and cooling (like Germany) is economically criminal.
I agree. As bad as wind is, solar is so much worse, except for niche locations/needs. 

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