PetroShale Inc Exits North Dakota Bakken -- June 17, 2023

Locator: 44965B.

PetroShale has some incredible locations in the North Dakota Bakken, link here.

I completely missed this one, link here:

Lucero Energy Corp. closed on June 15 the divestiture of non-operated North Dakota Bakken/Three Forks play assets for cash consideration of US$104.6 million (CAD$140.2 million).

Lucero, based in Calgary, Canada and formerly known as PetroShale Inc., did not disclose the buyer. The company described the transaction as being with “an arm’s length purchaser,” according to a press release.

The divested assets have 153 drilling locations. Production is expected to average 2,300 boe/d in 2023 (80% light oil and NGL). Evaluated by Lucero’s independent reserves evaluator Netherland, Sewell and Associates Inc., the assets include total proved reserves of 15 MMboe and total proved and probable reserves of 20.2 MMboe at Dec. 31, 2022.

At closing, Lucero had no debt and more than CAD$40MM of working capital. The company’s senior secured credit facility was revised to US$160MM.

$105 million / 2,300 boepd = $46,000 / boepd  -- at the very high end for ND Bakken. 

$105 million / 15 MMboe proved = $7 / boe.

$105 million / 20.2 MMboe proved + probable = $5.20 / boe.

To see the PetroShale locations in the North Dakota Bakken, link here.

“Arms length purchaser”: the fact that had to said, suggests to me that arm was very short. Sounds like the Sheffields in the Permian. This time next year we will know the buyer and we may know much sooner. Follow the NDIC hearing dockets and the daily activity reports.