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Magnum Hunter Resources
Corporate Presentation: January, 2011
- Market cap: $500 million
- Over last 18 months, new management with new strategy
- Strategy: acquire and operate properties in Eagle Ford, Marcellus, and Williston Basin (Bakken/TFS/Madison)
- Current Mix: Until today -- no CAPEX in the Bakken for 2011 (slide 5)
- The big jump in production started in 1Q10
- Production: 600 boe/day 4Q09 --> 2,800 boe/day 4Q10 (estimate)
- Bakken acreage: 15,000 gross acres; MHR interest 43%, --> 6,450 net acres
- Bakken acreage: not in the best Bakken; Burke, Renville, Ward, Bottineau, McHenry counties
- Bakken: 3 hz wells drilled 4Q09 with IP of ~600 boe (gross) combined
- Recently announced acquisitions: NuLoch Resources -- $327 million; NGAS -- $98 million
Nuloch Resources, Inc. Acquisition (some numbers rounded)
- $327 million acquisition
- Reserves: est proved reserves of 6 million boe; 85% crude; est probable, 3 million bbls
- 14 net Bakken/TFS wells producing; approx 1,550 boe/d productive capacity
- 71,600 net acres in Williston Basin (32,900 in Divide and Burke counties; 38,700 acres in Saskatchewan, right across the border from North Dakota); currently 1,070 boe/day productive capacity
- ND acreage: most of the acreage is in Divide county (24,500 net acres); other, Burke (6,700 net acres)
- 50,680 net acres in Alberta; currently 480 boe/day (50% light oil)
- Approx 267 net identified Williston Basin drilling locations (Bakken/Three Forks Sanish)
- No outstanding long term debt
- Expected to close on / before April 30, 2011
- Joint venture arrangements with operators in ND to include: Samson, Baytex
- 2010 CAPEX: $30 million in North Dakota
- 2011E CAPEX: $36 million in North Dakota
- After NuLoch and NGAS acquisitions
- NGAS: Marcellus natural gas asset
- NGAS a natural gas asset -- okay
- Only 54% of the new acreage in the Williston Basin is in North Dakota
- Significant increase in Bakken acreage, but not "prime" Bakken
- Explains recent price movement in Samson: new MHR management wants to drill in North Dakota and has partnered with Samson and Baytex [I changed this to "Samson" based on comment below; the presentation only used the word "Samson" and did not specify]
- The "Bakken" cachet will move price action on companies involved, but need to see results of some wells; one big well can make a big difference in these small companies
- A $1 billion market cap company overnight (MHR was a $500 million company before this acquisition) -- the deal is expected to close April, 2011
Bruce, are you certain this is SSN, Samson Oil and Gas? It looks more like Samson resources to me but I could be wrong.
ReplyDeleteSSN will be out with a report soon on their holdings in Wy. They have sold a lot of their leases to Chesapeake but did keep a percentage over ride. CHK is drilling a couple of wells and the results should be out in the near future. SSN had a 3D done on the 15000 or so acres they kept and they plan to start drilling soon. It is thought that the stock under valued and I think that it why we have seen the upward movement. This doesn't take into consideration the production in the north Stockyard Creek field.
Are you sure this is samson oil and gas and not samson resources.
ReplyDeleteMy mistake; I think you are correct. I changed the posting and referenced your comment.
ReplyDeleteIf I have it correct (and I continue to get these mixed up), Samson Oil and Gas (SSN) has acreage in the Bakken, but Samson Resources is also a driller.
If you are correct, and I think you are, then this transaction had nothing to do with the run-up in the share price of SSN earlier this week.