MRO To Sell Its UK North Sea Assets To Focus US Shale -- February 25, 2019

Shale is a "retirement party, not a revolution." -- Art Berman. So, today, it is being reported that Marathon Oil is exiting the UK North Sea to focus on high-return US shale oil operations. Data points:

• MRO holds interests in the Greater Brae Area; the Foinaven Field unit; and in Foinaven East
• all assets, including decommissioning liability, will be transferred to a third party
• price of the sale: $140 million
• MRO's play in UK North Sea
• production averaged 13,000 boepd at the end of 2018
• proved reserves: 21.4 million bbls
• last year, MRO sold its 16% non-operated in Libya to Total for $450 million
• earlier this month (February, 2019) MRO said it would allocate 95% of its CAPEX to four key US plays: the Bakken, the Eagle Ford, STACK/SCOOP, and northern Delaware in the Permian
• in the US, MRO
• production averaged 295,000 boepd at the end of 2018
• oil production at 174,000 bopd, up 22% from 4Q17
• for 2019, MRO expects total oil production to rise by 10%; US oil growth at 12%

WTI: drop in WTI today is said have occurred because President Trump tweeted that oil is too expensive.

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Back to the Bakken

Active rigs:

$55.44	2/25/2019	02/25/2018	02/25/2017	02/25/2016	02/25/2015
Active Rigs	66	57	40	39	121

Six new permits:

• Operator: Slawson
• Field: Big Bend (Mountrail)
• Comments: Slawson has permits for a 6-well Stallion/Zephyr pad in lot 3, section 1-151-93; 

Four producing wells (DUCs) reported as completed:

• 34082, 1,693, Equinor, Sjol 5-8F 3TFH, Williston, t1/19; cum --; #21146 -- still off line;
• 34083, 1,628, Equinor, Sjol 5-8F 4TFH, Williston, t1/19; cum --; #21146 -- still off line;
• 34561, 864, Abraxas, Ravin 11H, North Fork, t2/19; cum 24K over 41 days;
• 34562, 1,096, Abraxas, Ravin 10H, North Fork, t1/19; cum 28K aver 47 days;