Updates
May 18, 2013: the wells involved in the COP (BR) - DNR deal were posted in the daily activity report yesterday (May 17, 2013). About 250 wells were transferred. The original price was quoted as $1.05 billion. $1,050,000,000/250 = $4 million/well?
March 28, 2013: press release; update of the acquisition;
February 17, 2013: From slide 13 of DNR's corporate presentation of Februrary 5, 2013:
● $1.05 billion cash, prior to working capital adjustments
● Acquisition expected to close near the end of the first quarter of 2013 with a 1/1/2013 effective date
● The original oil in place of all units in the CCA is estimated at over three billion barrels of oil
● Including this acquisition, we estimate that a CO2 flood of our CCA assets could recover between 260-280 million barrels of oil
● Currently producing ~11,000 barrels of oil equivalent per day (~95% oil, ~4% NGLs)
● Assuming acquisition closes at the end of 1Q 2013, we estimate it to add ~7,700 BOE/d to 2013 production estimates
● Conventional (non-tertiary) reserves ~42 million boe
Original Post
ConocoPhillips said Tuesday it agreed to sell its energy properties in the Cedar Creek Anticline of North Dakota and Montana to Denbury Resources Inc. for $1.05 billion. The deal includes about 86,000 net acres with 2012 net production of 13,000 barrels of oil equivalent per day through November. The sale does not include assets in the Bakken region.This is a Red River formation field, an old field, perfect for CO2 EOR, one would assume.
Denbury said it'll fund the purchase out of the $1.3 billion of cash received from its Bakken sale and asset exchange with Exxon Mobil Corp. completed in December.
Regular readers of the MDW will recall these two items in my top stories for 2012:
Investment story of the year:Can't get much better than that.
The "Other" Williston Basin formation:
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RBN Energy: NuStar's adaptation of storage at the St James, LA, crude terminal to adapt to Bakken oil arriving by rail
So far in this blog series we have described how six crude oil terminals are adapting to a changing supply position in the Gulf Coast region caused by increased domestic US and Canadian production. The first four episodes covered terminals in the Houston area. Episodes five and six focused on the Louisiana Offshore Oil Port. The latest episode was the first of two on the St. James, LA crude terminal – describing NuStar’s adaptation of storage there to facilitate crude by rail traffic from North Dakota.Active rigs: 184
20582, drl, XTO, Ames 31X-13C, Grinnell, no IP yet; cum 21K 11/12;
22431, 380, WPX Energy/Dakota-3, Paul Peter Coffee 35HA, Moccasin Creek, t10/12; cum 14K 11/12;
22978, drl, XTO, Tong 34X-9B, Midway, no IP yet, cum 877 bbls 11/12;
23128, 322, Hess, SC-Norman 154-98-3130H-2, Truax, t12/12; cum --
23217, 335, SM Energy, Tomlinson 3-2HN, West Ambrose, t10/12; cum 13K 11/12;