Liberty Resources Re-Enters The Bakken -- January 30, 2014

Updates

Saturday, February 1, 2014: evidence of the global reach of the Bakken. A reader provides a link to a video of Liberty Resources presenting to the UK Parliament, House of Lords, on January 14, 2014.
 

Original Post

Press release:

Liberty Resources II LLC, a Denver-based oil and gas company, today announced that it has entered into an agreement to acquire oil and gas assets in North Dakota's Williston Basin for $455 million.

The properties to be acquired comprise approximately 53,000 net acres in Williams, Divide, Burke and McKenzie counties and over 4,000 boe/day of production from the Bakken and Three Forks formations, which Liberty II will continue to target as it furthers the development of the acquired properties.

The transaction represents the first acquisition by Liberty II since it announced in November 2013 a $350 million equity commitment from funds managed by energy private equity firm Riverstone Holdings LLC, including Riverstone Global Energy and Power Fund V and Riverstone Energy Limited, management, and other investors. Riverstone and Liberty II management previously partnered successfully in Liberty Resources LLC, an oil and gas company focused on the Bakken.

Over the course of two years and through thirteen discrete proprietary acquisitions, Liberty established a land position of approximately 43,000 net acres and drilled and completed 29 operated wells in the Bakken and Three Forks formations of North Dakota, ultimately achieving over 6,000 boe/day of net production. Liberty realized industry-leading recovery rates in the Bakken due to its application of unique and proprietary completion designs.

The majority of Liberty's assets were sold to Kodiak Oil & Gas in July 2013 for approximately $680 million.

It's not entire clear if one can assume the $455 million bought 53,000 net acres, but assuming it did, we have $455 million / 53,000 net acres = $8,600/acre.

"Snapshots" of Bakken operators are tracked here, which has actually turned out to be fairly useful.

*******************************

A Note to the Granddaughters

Video

I can't remember, but I think the first time I heard this song some time ago, I either a) did not like it, or, b) loved it. I can't remember. I heard it for the first time again, in a long time, today. And for some reason, it really hooked me. A great song.

I Hold On, Dierks Bentley