The price of oil has fallen fairly quickly the last few days and has now broken below $100 (WTI crude).
Shares in Bakken operators have similarly fallen back, and some quite significantly.
Following the WLL-KOG announcement, Bret Jensen over at Seeking Alpha suggested Oasis and Emerald could be takeover targets.
From the blog, a quick look at Emerald:
Emerald Oil (VOG acquires Emerald Oil, announced July 11, 2012) (chronological; most recent data at top)
- January, 2014: acquires 20,800 net acres in Williams, McKenzie; $3,650/acre; around 70,000 net acres total in the Bakken
- August, 2013: sees 2,850 boepd exit rate in December, 2013;
- June, 2013: a two-rig program
- EOX will sell Colorado acreage; focus on its 48,800 net acres in the Bakken, January 8, 2013
- EOX: effective September 4, 2012; acquired 4,500 net acres; $3,200/acre; McKenzie County; ~ 48,000 net acres in the Bakken?
- VOG to acquire Emerald Oil; will operate as Emerald Oil. July 11, 2012.
- For date regarding VOG/Emerald as of this date (July 11, 2012), scroll down to VOG.
- On date of announcement, July 11, 2012: Williston Bakken - 43,500 net acres; Niobrara - 45,000 net acres; Central Montana Heath -- 33,500 net acres
- First operated well to be in Dunn County, North Dakota
- Single-rig drilling program
Enterprise value about $470 million.
$470 million / 70,000 acres = $6,700/acre in some pretty nice areas in the Bakken.