KOG: Acquires 13,500 Net Acres Plus One Rig And A Partridge in a Pear Tree -- Bakken, North Dakota, USA

I'm joking about the partridge.

 

Data points:

• $235 million
• Additional 13,500 net acres ($17,000/acre disregarding all other assets)
• Perhaps one additional rig (details to be worked out)
• 3,000 boepd at closing (3,000 bbls x $50/bbl x 365 days) --> 54 with six zeroes/first year
• New acreage just north of KOG's Koala Project
• Acquisition will expand KOG's acreage position in the Bakken to nearly 110,000 net acress
• KOG assumes operatorship of 15 drilling units on the coniguous leasehold to be acquired

Click to map here

• The new acreage, immediately east of Williston, appears to be pretty much in Stockyard Creek oil field, and Epping oil field; it doesn't look like it extends into Brooklyn field.

See discussion here regarding this purchase over on the Teegue board.

Other data points

• Average EUR in this area: 650,000 boe from the Bakken formation
• No wells have yet been drilled on these lands testing the TFS
• Current estimate: 75 operated locations in acquisition
• Pipeline access
• Salt water disposal access

From the KOG discussion boards elsewhere:

With this additional purchase and 3,000 bbl per day plus all of the wells coming on line Kodiak will exit the year at around 12 to 14,000 bbl. Brigham is currently at roughly 14,000 bbl.