Eagle Ford / Austin Chalk Deal -- South Texas (Not The Permian): SilverBow Resources Announces Bolt-On Acquisition -- October 3, 2022

Link here.

Acquisition highlights and comments:

• from an undisclosed seller for a cash purchase price of $87 million 
• transaction comprised of incremental working interest on SilverBow’s existing acreage as well as new adjacent acreage; 
• provides for extended laterals, additional inventory locations and more efficient development
• June 2022 net production of approximately 1,100 barrels of oil equivalent per day; 44% oil 
• adds 5,200 net acres in the proven highly economic oil and condensate windows of Dewitt and Gonzales counties 
• significant upside in Austin Chalk, which has been de-risked with one well in center of acreage block having produced over 200,000 barrels of oil to date 
• in combination with existing position, acquisition creates consolidated 13,000 net acre block with 100 high rate of return drilling locations 
• combined position allows optimized development allowing for 70,000 additional lateral feet to be drilled with 12 fewer wells; optimized development significantly improves capital efficiency 

Comments:

• price per acre?
• not sure exactly how many acres acquired, but it must have been less than 13,000 net acres
• the acquisition, in combination with existing position, created a consolidate 13,000 net acres
• let's art with 6,000 acres as a guestimate
  
• $87 million / 6,000 acres = $14,500 but that's an incredibly good price in the Eagle Ford
• if more like $25,000 / acre, then $87 million / $25,000 = 3,480 acres
• if as much as $40,000 / acre, then 2,175 acres
• but look at this, price per flowing boepd
  
• net production of 1,100 boepd and most of it natural gas (44% oil)
• $87 million / 1,100 boe = a "beyond-the-pale" price paid of almost $80,000 / boepd
• reasonable comparisons? $20,000 to $40,000 / boepd

The graphics:

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