MRO With Three New Permits -- July 21, 2022

RimRock: Devon acquisition closes. At the blog, the deal is followed here.

Devon Energy Corp. today announced that it has completed its previously announced acquisition of the leasehold interest and related assets of RimRock Oil and Gas, LP in the Williston Basin for a total cash consideration of $865 million, less purchase price adjustments.

This acquisition adds a contiguous position of 38,000 net acres (88% working interest) directly offsetting and overlapping Devon’s existing position. Production from the acquired assets is expected to increase to an average of 20,000 Boe per day over the next year. The transaction also adds more than 100 highly economic undrilled inventory locations, positioning the company’s Williston Basin assets to maintain high-margin production and strong cash flow for several years. 

Back of the envelope: $23K / mineral acre: very, very high end; $43K / flowing boe: at the upper end of deals in the Bakken,

WTI: $96.41

Natural gas: $7.902

Active rigs: 45 or thereabouts.

Three new permits, #39108 - #39110, inclusive:

• Operator: Marathon (MRO)
• Field: Bailey (Dunn County) -- my favorite field
• Comments:
• MRO has permits for three new wells, a Pugh USA and a Luhman, in Bailey County and a Schookowsky in Chimney Butte; 
• Pugh will be sited in lot 1 sectioon 18-146-94, 506 FNL and 433 FWL; 
• the other two will be sited in NENE 13-146-95, between 1087 FNL and 1099 FNL and between 338 FEL and 300 FEL

Seven permits renewed:

• XTO: seven Marmon Federal permits in Williams County;

One producing well (a DUC) reported as completed:

• 35436, 1,210, XTO, Emma 31X-30HXE,