From a reader:
It appears Fidelity is done drilling in the Bakken. For about the last
year they had two drilling rigs running. One in Mountrail county and one
in Stark. They released the rig that was drilling in Mountrail, it's
now drilling for SM energy. And in the last week the rig in Stark
finished a three well pad, and moved to another pad, but the rig is just
sitting there in pieces. The last pieces were moved Thursday and there
has been no attempt to reassemble the rig.
The rig list still shows
the rig in Mountrail but it is one of the rigs listed twice. It has been
shown on the same Fidelity well for about the last year and a half. The
correct well is the SM well it is listed as being on.
On November 3, 2014, or thereabouts,
Fidelity announced it was going to market its E&P company.
Any thoughts on who may pick up the Fidelity acreage?
ReplyDeleteThere would be a bit of irony if Oasis picked it up.
DeleteIt's going to take a bit of convincing to bankers to line up the financing if the acquiring company, whoever it might be, does not have deep enough pockets to buy the acreage without further borrowing.
I don't recall if anyone has put estimates for the potential sale. I assume Fidelity has about 125,000 net acres; in the good old days, a $8,000/acre might have looked possible ($1 billion) but today, $4,000/acre? --> $500 million? Just a WAG; I'm sure others looking at MDU's annual reports and other sources can come up with much better figures. I'm comparing it to Oasis - Zenergy deal, 2013. I think the Zenergy acreage was better than much of Fidelity's acreage.