Triangle Petroleum Acquires 46,100 Acres; $120 Million

Triangle Petroleum acquires Williston Basin Properties for ~$120 mln: Co announces entered into two separate definitive agreements to acquire Williston Basin properties, and received bank commitments for 100% financing of the acquisitions, including a new senior secured second lien term loan facility.

Acquisition of Williston Basin Properties

• Signed two separate definitive agreements to acquire approximately 46,100 net acres (46% operated) in a contiguous area of Williams County, ND and Sheridan County, MT: 
• 1,175 Boepd of current production 
• 4,450 MBoe of net proved reserves with a PV-10 value of approximately $110 million based upon internal estimates as of April 30, 2014 
• Total consideration of approximately $120 million, net of estimated purchase price adjustments and sale of acquired salt water disposal well to Caliber Midstream Partners, L.P. 
  

Triangle, pro forma for the Acquisitions (approximate): 

• 135,237 net acres in the Williston Basin 
• 91,767 net acres in the core Williston Basin, 57% operated 
• 9,575 Boepd of production 
• 46,500 MBoe of net proved reserves, based upon internal estimates as of April 30, 2014

Back-of-the-envelope calculations:

• $120 million / 46,100 acres = $2,600 / acre

See also:

• the recent QEP announcement to sell some non-core assets in Williams County