Five New Permits -- Kraken Is Spacing Wellheads Only 33 Feet Apart -- June 16, 2021

NOG

• acquisition:
• will acquire 2,900 core Permian acres in Reeves, Lea and Eddy counties
• $102.2 million 
• bolt-on acquisition
• center of Reeves County, TX, as well as New Mexico counties of Lea and Eddy 
• EOG, Mewbourned Oil Company, COP, and Colgate Energy are the primary operators of the acquired assets; link here;
  
• back-of-the-envelope: $102.2 million / 2,900 acres = $35,000 / acre 
• in line with past deals by other operators 
• link here

• dilution:
• 5 million shares
• option to add an additional 750,000 shares
• to pay for the Permian acquisition story noted above
• today's closing price, $20 x 5 million shares = $100 millioin
  
• link here;
• later: NOG announces pricing -- $17.50/share. Hmmm.....nice discount.
• 5.75 million x 17.50 = $100.625 million
• after hours, dropped 4.45; dropped 85 cents/share; trading at $18.50 share.
  

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Back to the Bakken

Active rigs:

$72.23	6/16/2021	06/16/2020	06/16/2019	06/16/2018	06/16/2017
Active Rigs	20	13	61	62	57

Six new permits, #38374 - 38378, inclusive:

• Operators: Kraken (4), Eagle Operating, Rampart Energy
  
• Fields: Sanish (Mountrail), Robinson Lake (Mountrail), Foreman Butte (McKenzie), Wildcat;
  
• Comments:
• Rampart's wildcat, Coteau 1, will be sited in SWSW 1-145-99, Mercer County, 555 FSL and 460 FWL; the oil field is also a wildcat; 
• Rampart has about 50 permits in North Dakota; it has been active in North Dakota since 1959; 
• Rampart's previous well in North Dakota, #27081, Craig Allen 10-3H, Stanley oil field; SESW 11-155-91; a Bakken well that was drilled in 2015 and has reported a respectable 228K bbls crude oil cumulative;
  
• Eagle Operating has a permit for a Willy Miranda 7-8 week, to be sided in Foreman Butte, SENE 7-150-102, 2130 FNL 550 FEL:
• Kraken has permits for four KCH Murphy wells, three of them in the Sanish oil field, and a section line well in Robinson Lake;
• the four wells will be sited in lot 3 section 6-153-92
• the four will be sited 405 FNL and between 1903 FNL and 2002 FWL
• note the FWL siting for the four Kraken wells:
• 1903 ... 1936 ... 1969 ... and, 2002 -- the well heads will be spaced 33 feet from the neighboring wellhead; the typical in the Bakken has been fifty feet;