Oasis With Five New Permits; Two DUCs Reported As Completed -- November 16, 2021

NOG: Permian Basin expansion, link here to press release -- and Hart Energy here --

• will acquire non-operated properties in the Permian Basis from entities affiliated with Vertias Energy, LLC
• assets primarily located in Lea and Eddy counties, NM, and Loving, Reeves, Ward and Winkler counties, TX
• deal:
• $406.5 million in cash
• 1.9 million common equity warrants; exercise price of $28.30
• 31.7 net producing wells
• 5.6 net wells in process
• 4.0 AFE'd or permitted net wells
• 40.8 risked net future development locations
• assets managed by Mewbourne, Devon, COP and EOG
• should close 1Q22
• current production:
• 11,500 boepd
• on closing, looking to increase quarterly dividend 50% to 12 cents per share, from current 8 cents per share, marking the third increase in NOG's dividend since its initiation in 2Q21
• back of the envelope: $406.5 million + warrants / 11,500 boepd = $42,000 / flowing bbl

NOG offering, link here: 10 million shares. NOG trading around $23. Update, November 17, 2021: NOG announces pricing at $20/share. Link to press release here.

S&P 500: missed an all-time high at the close by about one point.

Ten-year treasury: creeps / crept higher; a bit over 1.6%.

Asia, post-Covid: opening up. Apparently all of Asia is starting to open up; Malaysia is completely open.

$5 trillion in government spending bills in the last year or so still working its way through the economy; the most recent $1.5 trillion infrastructure bill was just signed by the president this week.

The Fed, easy money for as long as the eye(s) can see:

• even with tapering, they continue to buy assets: that buying won't be completed until next year, at the earliest, March, 2022, but then, the increased in the Fed rate will proceed very, very slowly; it will still be "easy money" as far as the eye can see
• the Fed needs to raise rates for a number of reasons: the most important? a high enough rate to allow a cut if temporary easing is needed (and it will be); in other words, putting that arrow back in the quiver;
• the Fed can't raise rates more than one percent for one simple reason: the US government won't have the cash to pay the interest .... without raising the debt ceiling
• some of that is finally starting to sink into the collective psyche of traders and investors

Semiconductors: on fire today; Morgan Stanley says the semiconductor shortage has been resolved.

Surge in oil prices: some say the "worst" is over. Flat for awhile, and then gradually come down next year.  

Final trades on Fast Money: Apple, Merck, Ford, and Target.

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Back to the Bakken

The Director's Cut was released today; September, 2021, data. 

Active rigs:

$80.75	11/16/2021	11/16/2020	11/16/2019	11/16/2018	11/16/2017
Active Rigs	23	14	57	63	55

Five new permits, #38652 - #38656, inclusive:

• Operator: Oasis
• Field: Dimmick Lake (McKenzie)
• Comments:
• Oasis has permits for five Ramirez wells in SESW 32-151-96; 
• sited between 277 FSL and 278 FNL and between 1931 FWL and 1799 FWL (my hunch is that there is an error there; probably all between 277 FSL and 278 FSL and between 1931 FWL and 1799 FWL; we'll see.

Two producing wells (DUCs) reported as completed:

• 36124, 2,228, Slawson, Stallion 8-1-12TFH, Big Bend, first production, 9/21; t--; cum --;
• 36797, drl/TASC-->807, Hess, BL-Myrtrice-156-96-2536H-6, first production, --; t--; cum --;