Deals in the Bakken are tracked at the sidebar at the right.
Link here. Also here, at social media, to see comments.
6-K filing announces the sale of Williston assets for $115 mm. Included are 244 wells producing 3,000 boepd (before royalties) and ~ $22 mm of net operating income; no future drilling locations.
Nothing else regarding the assets, at least at this source:
Enerplus Corporation today, August 30, 2021, announced that it has entered into a definitive agreement to sell its interests in the Sleeping Giant field (Montana) and Russian Creek area (North Dakota) in the Williston Basin for total consideration of US$115 million.
In addition, Enerplus will receive up to US$5 million in contingent payments if the WTI oil price averages over $65 per barrel in 2022 and over $60 per barrel in 2023.
The effective date of the transaction is July 1, 2021. The sale consists of the Company's Interests in the developed Sleeping Giant field in Montana and the southernmost portion of Enerplus' North Dakota position in the Russian Creek area.
The Interests do not include any future drilling locations in Enerplus' identified Williston Basin drilling inventory. Enerplus' working interest(1) production from the Interests averaged approximately 3,000 BOE per day (77% crude oil and natural gas liquids) in the second quarter of 2021 and includes approximately 244 net wells. Estimated 2022 net operating income associated with the Interests is approximately US$22 million based on a US$60 WTI oil price.
I always like to see the acreage, that's that only way I can compare apples to apples, at least to some extent. Net acres not provided here.
But this is not particularly great Bakken. Assuming only one, maybe two wells, per standard drilling unit we get somewhere between 122 drilling units and 244 drilling units (as usual, some numbers rounded):
- 122 * 1280 acres / drilling unit = 156,160 acres; $115 million / 156,160 acres = $740 / acre; or,
- 244 * 1280 acres / drilling unit = 312,320 acres; $115 million / 312,320 acres = $375 / acre
Which sounds about right for this acreage. If I'm off by a factor of two, which is highly unlikely, it's still only $1500 / acre.
To whom? Read all the links and saw nothing. Did I miss it?
ReplyDeleteAs far as I can ascertain, the buyer's name was not listed. "Private" buyers are seldom named. I don't know if the buyer was "private"; just suggesting a possible reason for the buy not being mentioned.
DeleteProbably the Chinese? They have been active here before.
ReplyDeleteWe'll know when the NDIC posts the name of the buyer when the wells change ownership.
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