Part II: KOG's January, 2012, Acquisition in the Bakken, North Dakota, USA

Part I here, along with location of acquisition; thoughts on seller. 

Note:

• The record IP in the Williston Basin: Tarpon Federal is in Twin Valley oil field. 
• The center of the southern portion of KOG's January, 2012, acquisition is located about 8 miles to the northwest. Eight miles.

Data points from KOG's press releases and summary at this link.

Southern acreage block, 30,000 net acres:

• Average per well EUR: 750,000 to 900,000 boe. My hunch: 1 million boe, easy
• Bakken wells only drilled so far in this area; no Three Forks wells yet
• KOG feels Three Forks will be in play based on KOG's Koala Project nearby to the southwest

Northern acreage block, 20,000 net acres:

• Average per well EUR: 350,000 to 450,000 boe

Also included in the sale:
Surface equipment and gas pipeline connection facilities that tie into a regional third-party natural gas gathering system
Three salt water disposal wells
Southern operated lands are near to a crude-by-rail terminal and interstate pipeline interconnect that is expected to be fully operational in 2012


Potential:

• 300 additional operated locations prospective; total for KOG in Williston Basin: 800 net

Acreage:

• 50,000 new acres brings KOG's net acreage to approximately 155,000 acres (compare with others at this link)
• BEXP: 375,800
• Oasis: 303,000
• OXY USA: 200,000
• Baytex: 126,000
• Chesapeake: 190,000
• Denbury: 266,000

Of course, these pale in comparison to WLL and CLR net acreage

Most recent date suggested North Plains Energy, LLC, had about 40,000 net acres in the Bakken; the KOG acquisition: 50,000 net acres.

KOG:

"Concurrent with this announcement, we furnished our 2012 preliminary Capex budget of $585 million , which includes accelerated plans for development drilling in each of our core Williston Basin operating areas throughout 2012."