Oasis Sells Bakken Acreage - Strong Production Growth in 2014

Oasis Petroleum Bakken Acreage Map - Acquisition Included

Oasis Petroleum set its 2014 capital budget at $1,425 million, with 96% of expenditures ($1,367 million) earmarked for drilling and completion of its operated and non-operated wells.

The company saw production growth jump ~50% in 2013 from its' 2012 figures, and expects continued growth in 2014.

Oasis Anticipates Growing Production in 2014

Oasis plans on increasing production to 46,000 boed/d - 50,000 boe/d by the end of the year.

If the company reaches it's midpoint estimate of 48,000 boe/d, then that will be ~42% higher than total production of 33,904 boe/d in 2013.

Oasis Petroleum Divestiture of Bakken Acreage

A portion of Oasis's capital budget for 2014 will come from a $333 million sale in January of its' non-operated Sanish properties and a few non-operated leases adjacent to the Sanish.

Whiting Petroleum is believed to be the operator of the Sanish properties, and would be a logical buyer, although, Oasis has not disclosed any information about the purchaser.

“Mr. Nusz said, “The funds from the Sanish divestiture strengthen our liquidity position to execute on our accelerated drilling program in 2014. The transaction is consistent with our growth strategy as we de-lever the balance sheet and put the capital into our high return operated projects.”

Properties ear-marked in the sale are 8,354 net acres and 28.2 net producing Bakken and Three Forks wells.  Production from the properties was 2,691 boe/d during Q4 2013.

In 2013, Oasis grew its Bakken acreage to 515,314 total net acres from 335,383 net acres in 2012. With ample running room, non-operated and non-core properties become a fit for divesting. The company generated cash that can be used immediately and saved future development expenses that it can directed toward operated wells and acreage.

Oasis at a Glance in 2014

• $1,425 million capital budget ($1,367 million for drilling and completing wells)
• 42% production increase to 46,000 boed/d - 50,000 boe/d expected by the end of 2014
• $333 million sale of 8,354 net acres in January 2014
• Increase total operated rigs from 14 - 16 by second half of 2014
• Complete approximately 205 gross (147.8 net) operated and 7.7 net non-operated wells

Emerald Acquires Bakken Acreage in the Wiliston Basin for $74.6 Million

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Emerald Oil acquired 20,800 net acres in the Williston Basin for $74.6 million in two separate deals in early January.

The company now controls 85,000 net acres in the area.

With the closing of this deal, Emerald is now the operator for 75% of its acreage. The company's purchase includes Bakken and Three Forks producing properties and an undeveloped leasehold in McKenzie and Williams counties in North Dakota. Without valuing production of 350 boe/d, the company paid a little more than $3,500/acre.

“McAndrew Rudisill, CEO, said, “This additional acreage expands Emerald’s presence in our Low Rider and Lewis & Clark focus areas of McKenzie County, ND where we have seen strong production growth as a result of our successful operated well program.”

Roughly 19,500 of the net acres are adjacent to the company's Low Rider operating area, with 17 of the 19 drilling spacing units acquired being in this area.

Approximately 62% of the acreage acquired is already held by production, with ~350 boe/d of current net production.

Emerald Bakken Acquisition Highlights:

• Emerald acquired 20,800 net acres for $74.6 million in the Williston Basin
• 62% of acquired acreage is held by production at 350 boe/d
• Emerald's assets now include 85,000 net acres in the basin

Hot Area for Acquisitions

Emerald is not the only company expanding it's acreage in the Bakken. In August of last year, Whiting Petroleum announced the acquisition of 39,310 gross (17,282 net) acres targeting the Bakken in North Dakota and Montana for $260 million.

Whiting's acreage is located in McKenzie and Williams counties in North Dakota, and Roosevelt and Richland counties in Montana.

In total, Whiting has 714,541 net acres in the region at a cost of $643 million or less than $900/acre.

Read more: Whiting Petroleum Acquires Bakken Acreage In MT & ND - $260 Million

Northern Oil & Gas Repuchases Stock - Grows Bakken Production 20%

Northern Oil & Gas Bakken Acreage Map

Northern Oil & Gas bought back more than two million shares of its common stock in the third quarter and grew production 20% over the second quarter to 13,049 boe/d.

The company participated in bringing 147 gross (12.1 net) wells to production in the third quarter and has participated in 358 gross (27.3 net) wells year-to-date. Approximately 260 gross (18.8 net) wells are in some stage of drilling or completion.

Read more from earlier in the year: Northern's Bakken Production Growth Slowed by Bad Weather

At the end of September, the company spent an average (AFE) of $9 million on each well.

“October activity was also very encouraging and we are in a great position to continue to execute our business plan into 2014 and beyond.”

— Michael Reger, CEO

Northern Continues Leasing Bakken Acreage

Northern Oil & Gas acquired leases on 7,357 net mineral acres during the third quarter at a cost of $10.8 million ($1,462/acre) and now controls ~187,000 net acres prospective for the Bakken and Three Forks. The company has spent a total of $22.6 million on acreage in the first nine months of the year.

Approximately 61% of the company's acreage position is held-by-production.

Samson Oil & Gas Selling Bakken Assets In Montana

Samson Oil Gas Roosevelt Project Bakken Map

Samson Oil & Gas is selling 30,000 net acres in the company's Roosevelt Project in Montana for $13.5 million.

The deal includes the acreage and an interest in the following wells: the Australia II, Gretel II, and Abercombie (Contiental Resources operated).

Samson will use the cash raised to further development of the company's North Dakota Bakken prospects.

The Roosevelt Project accounted for the bulk of the company's acreage in the play, but well results must not have been good enough to continue exploring the prospect. The company will now focus its development efforts in its 2,450 net acres in North Dakota. Samson expects to be producing 1,200 net b/d in the Bakken by the end of 2013.

Samson Oil & Gas Adds Bakken Acreage in Williams County

Bakken Three Forks Well Spacing and Drilling

Samson Oil & Gas has agreed to acquire 1,225 net acres across two 1,280-acre drilling units in the company's Rainbow Project area in Williams County, ND.The deal includes the exchange of acreage and drilling carries, but the details won't be released until the deal closes.

Samson believe the acreage acquired has potential for 16 wells, eight in the middle Bakken and eight in the first bench of the Three Forks. Samson will have a 52% interest in one unit and a 23% interest in the other.

Hess, Halcon, and Continental Resources also own interests in the Rainbow Project.