CLR February, 2021, presentation, link here.
CLR may refer to this as the "Samson deal," or the "Samson acquisition" or the "Samson leasehold."
History of Samson Resources, from the blog's "operators page":
- 2017, January: transfers 130 wells to Resource Energy CAN-AM, LLC
- 2016, August: files new Chapter 11 exit plan;
- 2015: files for bankruptcy; that plan ultimately failed as oil prices continued to plummet
- November, 2014: Samson Resources Bakken assets up for sale? Samson Resources Bakken assets said to be worth less than $500 million
- sells 20,000 acres for $30 million to Magnum Hunter; Divide County, along Canadian border
- sells 120,000 acres in Divide County and northern Williams County to CLR
- previously private, bought by a consortium led by KKR in 2011 (?) for $7.2 billion; Bakken assets worth $650 million (?)
Note the "relationship" of Samson Resources with CLR.
For background by the company go to this site first: undated, but it appears to have been posted late 2019, or early 2020, with strategic overview/plans for calendar year 2020:
- headquartered in Tulsa, OK
- March 1, 2017: Samson Resources emerged from bankruptcy as Samson Resources II, LLC
- 85 new equity investors
- assets in
- East Texas / North Louisiana
- Wyoming: Greater Green River and Powder River basins
- September, 2017:
- the company sold its assets in East Texas/North Louisiana for $525 million
- company paid off existing debt and make a large cash distribution to its sharebholders
- In September, 2019:
- the company sold its assets in the Greater Green River Basin
- declared another special distribution to its sharesholders
- 2020: pure play Powder River Basisn
- 132,000 net acres
- 2,400 state permits
- 10,000 bopd (73% liquid)
Then this site, January 4, 2021:
- to sell all of its Powder River Basin to an undisclosed buyer for $215 million in an all-cash transaction;
- the company exited 2020 producing 8,500 boepd (75% oil) from the Powder River Basin
- the sale is expected to close on/about March 4, 2021
- effective date: January 1, 2021
- following the closing, the company will have divested substantially all of its upstream assets
- the company's only remaining upstream oil and gas assets will consist of approx 24,000 net leasehold acres, 23,000 net mineral acres and 40 non-operated wells, all located in East Texas, Oklahoma and Louisiana which the company anticipates divesting in early 2021
- using proceeds fro that sale, the company will pay off approx $13 million in debt and make a cash distribution to its unitholders
- CEO: Joseph A. Mills
- founded in 1971 by Charles Schusterman
- following the closing of the Powder River Basin sale, the company will begin the process of winding down its affairs and moving toward final dissolution
Now, the February, 2021, CLR corporate presentation, linked above, slide #11:
- straddles Campbell and Converse counties in Wyoming
- net resource potential:
- 400 million boe
- 75% oil
- net acres: 130,000 (80% held-by-production)
- current net production: 9,000 boepd, 80% oil
- federal permits: 96 in-hand (6 rig years)
- purchase price: $215 million
- close: March 4, 2021
- three of the top five wells in the Powder River Basin in the leasehold position
- average IP30: 2,670 boepd (88% oil); 2,670 x 30 days = 80,000 boe per 30-day month
- CLR 2-rig program starting in 2Q21
- initial targets: Shannon, Frontier, and Niobrara
- future targets: Sussex; Mowry, Muddy
- the six formations: 4,800' stacked play
Back-of-the-envelope:
- $215 million / 130,000 net acres = $1600/acre
- one primary target
- two secondary targets
- three future targets, in a stacked play
- last time I checked, May, 2018, 796,000 net acres in the Bakken
- 130,000 / 796,000 = 16%
