Bakken operators are tracked here.
From twitter:
- Enerplus agrees to acquire privately-held Williston Basin oil and gas producer Bruin E&P Holdco for $465M.
- Enerplus says it will fund the deal with a new $400M term loan and a concurrent $115M bought deal equity financing; the company will not assume any Bruin debt as part of the deal.
- Bruin’s properties are located in North Dakota with significant production and development inventory concentrated in the Fort Berthold area near Enerplus' primary property.
- Additionally, Enerplus says Q4 production came in at the higher end of guidance, with total output of 86.2K boe/day, including liquids production of 49.2K bbl/day.
- For 2021, Enerplus expects to deliver production of 103.5K-108.5K boe/day, including 63K-67K bbl/day of liquids, with capital spending of $335M-$385M.
- The value of Enerplus' Bakken assets "may be diminished depending on what happens with federal oil and gas regulations and the Dakota Access Pipeline," Elephant Analytics writes in an analysis posted on Seeking Alpha.
Acquiring 151,000 net acres in the Williston Basin, including 30,000 net acres contiguous with Enerplus' tier 1 acreage position. The acquisition includes approximately 24,000 BOE per day of existing production, 84 MMBOE of proved plus probable reserves, and an inventory of 149 (111 net) drilling locations (including drilled uncompleted wells).
After the acquisition, Enerplus estimates it will hold more than a decade of drilling inventory capable of sustaining production at 2021 levels, with additional drilling inventory upside on Bruin's acreage if commodity prices strengthen.
With Biden as president, Enerplus may have several decades of drilling inventory.
Back-of-the-envelope: $465 million / 151,000 net acres = $3,000 / acre.
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