WTI Back Up To $104 -- July 21, 2014; Comparing MDU News Today With Whiting-KOG Deal Announced Earlier

I missed that, following the Yahoo!Finance page which has the "wrong" price again: oil is up almost another $1.00. Let's see, three shooting wars: the Ukraine, Israel-Hamas, and Iraq. Libya is pretty much out of control.

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The MDU (Fidelity) Sale of Bakken Minerals In Mountrail County

The Whiting - KOG Deal Recently Announced

[Update, July 22, 2014: That $200 million MDU deal? Buyer was Lime Rock Resources. A big "thank you" for Don to solving this "mystery."  Link here.  Original post here. "Anonymous source" wrong unless there is a connection between EOG and Lime Rock.]

By the way, Don did a few "back-of-the-envelope" calculations regarding the announcement that MDU will sell a few Bakken acres in Mountrail County and a couple of observations:

• first, MDU probably discussed whether to issue more shares (dilution) or sell some assets to raise the money necessary for earlier transactions and raise capital for drilling
• a reminder that Fidelity bouth 24,500 mineral acres in the Powder River Basin (personally, I like to see the diversification this provides Fidelity)
• the Powder River Basin purchase, located in Converse County, WY: primarily undeveloped mineral leasehold of approximately 24,000 net acres (accretive to 2014 earnings)
• current production in this area is 80% oil (nice; Bakken is about 94% oil)
• with regard to the Fidelity sale of ~ 4,000 acres for $200 million, this works out to $100,000 per flowing barrel ($200 million / 2,000 bopd)
• the Whiting-KOG deal works out to about $162,000 per flowing bbl
• 60% price difference for the KOG acreage?

A big "thank you" for Don for the observations and the calculations.