The BEXP Deal on a Dollar/Acre Evaluation -- The Bakken, North Dakota, USA

Update

Oil and Gas Journal article on the BEXP / Statoil deal.

Norway’s Statoil ASA reported it will acquire Austin-based independent Brigham Exploration Co. for $4.4 billion in a merger agreement. The deal marks Statoil’s entry into the Bakken and Three Forks unconventional oil plays in the Williston basin in North Dakota and Montana.

Plans call for Statoil to retain Brigham’s headquarters and retention plans for employees are in place.

The Brigham transaction will provide Statoil with more than 375,000 net acres in the Williston basin. Brigham also holds interests in 40,000 net acres in other areas. Brigham’s current equity production is 21,000 boe/d, and the acreage has potential to ramp up to 60,000-100,000 boe/d equity production in 5 years.

Using horizontal drilling and hydraulic fracture stimulations, Brigham has drilled 88 consecutive producing wells in North Dakota having an average early 24 hr peak production rate of 2,800 boe/d. The company currently operates 12 rigs in the Bakken-Three Forks and aims to drill 140 wells/year.

Original Post

Two folks have already beat me to the punch on this, so a quick post for time/date stamp bragging rights, and then more information if anyone requests it.

First person said BEXP deal: $11,733/acre.
Second person said BEXP deal: $12,500/acre.

My calculations show that the better Bakken is conservatively valued at $156,250/acre over the lifetime of the well, and probably much more.