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,