Several Bakken companies have announced aggressive CAPEX plans this past year. To raise the necessary cash, some companies have had to sell assets in the Bakken.
This provides an opportunity for other companies, not always oil companies, to get a foot inside the Bakken door.
In addition, it provides investors, surface owners, and mineral rights owners an idea of how to estimate value of their holdings.
In this story, SM Energy sold Bakken reserves to a partnership between GE Financial and Sequel Energy LLC.
In this particular deal, SM Energy sold 20 million boe in proved reserves and 3,000 bopped production for $137 million. The buyers got the reserves for $6.85/barrel, and the production for free.
Looks like that 137 was one part of a two part deal. The other part was for 130. So if I'm reading that right, it was 237 total.
ReplyDeleteI apologize if I misread that. I will go back and see if I can sort it out. Knowing my tendency to read too fast and my history of making these kinds of errors, you are probably correct. If so, thank you for alerting me to the correct figure.
ReplyDeleteThere must be another source document for $130 million that you reference and I cannot find. The story certainly led me to believe the total price was $137 million.
ReplyDeleteI went back to the March 1 issue of the Journal. They didn't break out how much of the reserves and production belonged to the Williston(for $137) and how much to the Wyoming part (for $130).
ReplyDeleteThank you.
ReplyDelete