Updates
Later, 2:57 p.m. CT: see comments. Reader has comment/query regarding CLR's "East Region," hoping a reader might have some update.
Original Post
For background to the next story, see this post first.
A huge "thank you" to the reader who sent me this link.
Dallas Cowboys owner Jerry Jones’ Comstock Resources oil company is offering to sell properties in North Dakota’s Bakken oilfield, a marketing document seen by Reuters shows, as rising energy prices lift buying and selling in the sector.
Crude oil prices are up about 38% year-to-date as economies bounce back and fuel demand recovers from travel restrictions to curb the pandemic. U.S. shale oil companies also are seeking larger scale to drive returns and operational efficiency.
The properties on offer include a non-operated working interest in 436 wellbores. The holdings are valued at about $200 million based on futures pricing, according to the document.The 427 actively producing wells in the portfolio most recently had a six-month average net production of 6,400 barrels of oil equivalent per day, the teaser said.
Comstock’s decision to offload its Bakken assets comes as deal activity is rising in the Haynesville shale in Louisiana, where it produces most of its energy. Louisiana rivals Southwestern Energy recently bought Indigo Natural Resources and Chesapeake Energy’s acquired Vine Energy.
“High oil prices and a resurgence in Bakken M&A activity may have led to the company’s decision to market its non-operated interests to help fund participation in Haynesville consolidation,” said Andrew Dittmar, a senior M&A analyst with data provider Enverus.
Another story suggesting that Harold Hamm's decision to drill in Louisiana may have been quite prescient.
More at the link.
Harold Hamm (Continental) is drilling in Lousiana?
ReplyDeleteWill be.
DeleteThank you for catching that.
Special request. Can you do a post on CLR's EAST region acreage?
ReplyDeleteNot expecting you to know the answers. But just if you can shake the tree a little perhaps we get some info in comments.
Has always been a mystery to me what/where they had leases in the "East". Seems like a lot has lapsed, but they still have 70,000 acres. Just wonder what/where. And if any plans to develop them ever. Doesn't seem like it. But just sort of wonder the story.
(P.s. I don't think this is the LA acreage. But who knows.)
Comment is posted but I generally don't get a lot of responses to queries in comments, unfortunately. In addition, information about future drilling plans is so closely held, I doubt someone would say something ... but one never knows.
DeleteWith regard to CLR's EAST REGION assets, see this very, very old press release from CLR:
Deletehttps://investors.clr.com/2012-11-07-Continental-Resources-Announces-Agreements-To-Purchase-Bakken-Assets-For-650-Million-And-To-Divest-East-Region-Assets-For-125-Million.
Back in 2012, that press release: Continental announced it has entered into an agreement to sell its producing crude oil and natural gas properties and supporting assets in its East Region for cash proceeds of $125 million. The East Region primarily includes properties east of the Mississippi River, including the Illinois Basin and the state of Michigan, among other areas. Production from the properties included in the sale agreement averaged approximately 1,100 Boepd for the three month period ended September 30, 2012.