Tuesday, September 9, 2014

American Eagle's Most Recent Corporate Presentation -- September 9, 2014

A reader just sent me this link, noting that American Eagle appears ready to announce production from its four-well pad.

Data points from the presentation. Recall -- Richard (Dick) Findley is chairman; credited with discovering the Elm Coulee in the Williston basin in the 1990s (previously posted).

Net acreage
  • all (?) in northwest corner of Divide County (along Canadian border)
  • 46,800 net acres
  • 66% operated
  • 65% HBP
Divide County, Spyglass prospect
  • shallower; superior rock quality; relatively high EUR wells; high oil content 
  • shallower: lower drilling cost
  • superior rock quality: reduced proppant volumes; no ceramic required
  • 2.5 million lbs vs 4 - 5 million lbs (often with ceramic) in rest of Bakken
  • 89% oil
Three Forks Long Lateral
  • $6.4 million well completion costs (drill and complete)
  • EURs of 400,000
  • $50+ / boe cash margin 
  • 45% - 50% IRRs (exceeds the Bakken in general -- 36%)
Economics
  • 45%+ IRRs
  • 21-month paybacks (remember, EOG wants one-year paybacks)
  • $7.0 million per well
  • EURs: 393,000
Infrastructure
  • oil trucked to rail terminals
  • natural gas capture should go from 85% to 100% if plans work out with Tioga Hess plant
  • electrical infrastructure should reach Spyglass by end of 2014
Development plan
  • proved reserves: 7.6 years of inventory
  • undeveloped area: 8.5 years of inventory
The four-well pad of interest:
  • 27916, conf,  George 3-1-163-102
  • 28117, conf, AMZG, Crestone State 3-1-163-102,
  • 28430, conf, AMZG, Iver 3-1-163-102,
  • 28572, conf, AMZG, Massive State 3-1N-163-102,

2 comments:

  1. did he really discover Elm Coulee aka Big Sky?

    ReplyDelete
    Replies
    1. The Elm Coulee oil field in Richland County, Montana, yes.

      Delete

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