acquisition expected to produce approximately 1,200 Boe per day in 2021, and wells are expected to be online in the first quarter of 2021
all acquisition and development capital included in Northern’s previously stated budget
acquisition expected to generate $11.3 million of 2021 cash flow from operations at June 5, 2020 strip prices; expected payback period under 1.5 years
Northern has entered additional commodity hedging instruments at prices higher than the strip for 2021
More:
Williston Basin
$1.5 million
seller: WPX
320 acres
nine gross well proposals to fully develop the unit consisting of 2.1 net wells
back-of-the-envelope: about $5,000/acre
Break-even estimates:
Northern entered into additional crude oil derivative swaption
transactions (link here) to hedge a portion of the production associated with this
and other transactions at an average of $45.48 per barrel for 2021 for
1,500 barrels per day. That average price is approximately $3.85 higher
than the underlying strip price used to calculate the estimated cash
flow stream described above.
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