Wednesday, April 14, 2021

Additional Details On The Enerplus - Hess Deal Announced Recently -- April 14, 2021

There's a handful of "things" I like about the blog. One of the "things" I like is the sidebar at the right with all the links. Among that long, long list, are the deals for each calendar year. That section comes in quite useful.

I follow the recent Enerplus - Hess deal, 2021, here. 

At the time I missed the press release from Hess which was much more informative than the news reports. This is additional information not previously noted on the blog:

Hess Corporation announced today that it has entered into an agreement to sell its Little Knife and Murphy Creek acreage interests in the Bakken in North Dakota to Enerplus Corporation for a total consideration of $312 million, effective March 1, 2021.

The sale consists of approximately 78,700 net acres, which are located in the southernmost portion of Hess’ Bakken position and not connected to Hess Midstream infrastructure. Net production from this acreage averaged 4,500 barrels of oil equivalent per day net to Hess in the first quarter of 2021.

"The Bakken is a core asset in our company’s portfolio," CEO John Hess said. "Sale of the Little Knife and Murphy Creek acreage – the majority of which we were not planning to drill before 2026 – brings material value forward and further strengthens our cash and liquidity position."

The sale is expected to close in May 2021, subject to customary closing conditions.

See first comment. A reader provided this link regarding Hess and Guyana.  

From Offshore, December 10, 2018 -- wow, that was a long time ago -- tying up loose ends. Headline: Hess to focus on deepwater Guyana projects. Hess Corp has reported an E&P capital and exploratory budget of almost $3 billion for 2019.

Of this, about 75% will be allocated to high return growth assets in the Bakken and Guyana

The $2.9 billion capital and exploratory budget is allocated as follows: $1,890 million (65%) for production, $570 million (20%) for offshore developments and $440 million (15%) for exploration and appraisal activities.

The operator forecasts net production to average between 270,000 and 280,000 boe/d in 2019, excluding Libya, compared to approximately 245,000 boe/d in 2018 proforma for the sale of the company’s joint venture interests in the Utica shale play.

For production, the company has allocated $1.425 billion to fund an increase to six rigs, from an average of 4.8 rigs in 2018, and the shift to higher intensity plug and perf wells in the Bakken. The company expects to drill approximately 170 new wells and to bring online approximately 160 new wells in 2019. Funds are also included for investment in non-operated wells.

1 comment:

  1. They are selling off noncore (bakken or otherwise) to fund Guyana.