Saturday, July 14, 2018

PetroShale Paying Permian Prices For Bakken Acreage -- July 14, 2018

An alert reader caught this story; I would have missed it. It's a big story on many levels.

PetroShale will pay $55 million for 1,981 net acres in the Bakken:
  • 100% operatorship and held by production
  • 19 gross (14.3 net) high quality drilling locations
  • will mean a 24% increase in PetroShale's net drilling locations (from 59.5 to 73.8 locations)
  • 1,981 net acres of land; represents a 34% increase in company's existing acreage
  • average royalty rate: 14%; generally, PetroShale's corporate average is 20%
  • includes 550 boepd of low decline, producing assets
  • includes undeveloped acreage 
  • new acreage located in the core of PetroShale's existing focus area in North Dakota
Permian price paid:
  • $55 million / 1,981 net acres = almost $30,000 / acre 
Seller: an independent oil and gas company, not identified in the linked article

PetroShale's current focus: the Mandaree and Antelope oil fields

Bakken operators: that page has been updated to reflect this news;

Existing permits (from "well search," NDIC):

Note: at the sidebar at the right, I do have a link to "Williston Basin Deals."

Operators in the Antelope oil field that I think might be private (not publicly traded):
  • White Butte Oil Operations, LLC -- two permits
  • Bruin E&P Operating, LLC -- forty-nine permits
Operators in the Mandaree oil field that I think might be private (not publicly traded):
  • Rimrock Oil & Gas -- ten permits 
NOTE: see this post, dated July 11, 2017:
  • Bruin bought Halcon ...
  • 104,000 net acres
  • $1.4 billion 
  • that works out to $13,500 / acre
  • if it was Bruin, they flipped 1,981 acres for almost $30,000 / acre

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