Pages

Wednesday, June 10, 2020

NOG: Announces Core Bolt-On Acquisition -- June 10, 2020

NOG: announces core bolt-on acquisition.
  • 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. 

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.