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Friday, January 13, 2017

WPX Acquires More Acreage In The Permian -- January 13, 2017

Disclaimer: this is not an investment site. It is also not a travel site nor a North Dakota tourist site. It most definitely is not a dance site.

WPX Energy buys into the Permian (original post incorrect; I made huge error; a reader corrected me, see first comment; much appreciated). From Yahoo!Finance/MarketWatch:
  • 18,100 net acres acquired; brings WPX up to 120,000+ acres in the Permian
  • 23 producing wells in the acquisition
  • $775 million
  • will pay with proceeds from equity issuance and cash on hand
Back-of-the-envelope: $775 million / 18,100 net acres -- $43,000 / acre.

Sanchez, Blackstone team to buy Eagle Ford acreage from Anadarko for $2.3 billion, from Oil & Gas Journal:
Sanchez Energy Corp., Houston, and funds managed by private equity firm Blackstone Energy Partners LP have entered a 50-50 partnership and agreed to acquire working interest in 318,000 gross operated acres in the western Eagle Ford shale of South Texas from Anadarko Petroleum Corp., The Woodlands, Tex., for $2.3 billion. Encompassing the Comanche area, the 155,000 acres net to Sanchez Energy and Blackstone is contiguous to Sanchez Energy’s Catarina area, where the firm has 106,000 net acres in Dimmit, LaSalle, and Webb counties with 100% working interest. Eagle Ford shale development covers 80% of the acreage to be acquired, with resource potential from the Austin Chalk and Pearsall shale. 
  • includes 132 DUCs
  • 70% liquids
  • proved reserves: 300 million boe, 70% liquids 
  • individual rates of return expected to exceed 100%
  • more than 4,000 Eagle Ford drilling locations
  • more than 20 years of economic drilling inventory at current strip prices
$2.3 billion / 155,000 net acres = $15,000 / acre.

Hess stock rallies after plan to boost exploration budget and production. From Yahoo!Finance/MarketWatch:
  • 2017 budget will rise 18% from year ago
  • 2017: $2.25 billion
  • will fund additional rigs in the Bakken
  • Hess shares have soared 56% over the past 12 months
Could be a nice day for oil investors today (remember -- it's a 3-day weekend):

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