Updates
September 10, 2021: was Kraken the seller?
Original Post
Somehow I missed this one.
From Geoff Simon's top North Dakota energy stories this week:
Whiting Petroleum announced this week it has entered into an agreement with an undisclosed seller to acquire 8,752 net acres in Mountrail County for total cash consideration of $271 million. [Undisclosed seller in the Sanish. Slawson?]
To partially offset the cost of the transaction, Whiting plans to divest its Redtail oil and gas assets in Weld County, Colorado. The assets, which cover more than 67,000 acres with daily production of 7,100 barrels of oil equivalent, are being sold to a private entity for $187 million.
The Bakken acreage includes 61 undrilled locations, five drilled but uncompleted (DUC) wells, and currently produces 4,200 BOE/day, of which 80% is oil. Company officials say there is significant upside from Whiting Petroleum’s existing operations in the Sanish field.
“These two transactions result in a significantly deeper drilling inventory in our key Sanish operating area, while divesting of properties in Colorado that were not going to compete internally for capital," said Whiting CEO Lynn A. Peterson. "These transactions demonstrate our strategy to focus our attention on value-enhancing opportunities that compete for capital in a $50 oil environment."Peterson said the company estimates that in a mid-$50s oil environment, it has more than six years of high-quality drilling inventory, assuming a two-rig drilling program.
$271 million / 8,752 net acres = $31,000 / acre. Figures rounded.
$187 million / 67,000 net acres = $2,800 / acre. Figures rounded.
8,752 acres / 640 acres = 14 sections.
8,752 acres / 1280-acre units = 7 drilling units
61 undrilled locations / 7 drilling units = 9 additional wells in existing 1280-acre units;
Whiting is tracked here, although it is rarely updated.
"Deals in the Bakken" are tracked at the sidebar at the right.
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