Bakken Resources Sells Bakken Acreage ~$7.9 Million

February 17, 2014 Kirk Eggleston

Bakken Resources Inc. sold 767 net acres in McKenzie County, ND to an undisclosed buyer in early February 2014.

Total purchase price for the acreage was $7,871,248. That comes out to $10,250 per net mineral acre.

Notable Bakken Acquisitions and Divestitures in January 2014

So far in 2014, there have been at least two other acreage deals in the Bakken.

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

Oasis had a $333 million sale in January of its’ non-operated Sanish properties and a few non-operated leases adjacent to the Sanish.

Bakken Resources Gains ~412% Return on Investment

With the closing of its' acreage deal, Bakken Resources gains a ~412% percent return on its original investment. In November of 2010, the company spent $1,535,000 for the 767 net acres in McKenzie County.

Bakken Resources will retain a 2% royalty interest in the sold assets.

“We are very pleased about this win-win transaction,” notes Val Holms, CEO. “Proceeds from this transaction will allow us to seriously explore several other opportunities we are currently evaluating. We continue to hold a 2% royalty interest in the assets we sold and also receive royalties on our remaining 1,600 +/- net mineral acres located in Bakken region.”

Bakken Resources is a non-operator, and prior to this deal, the company owned mineral rights to approximately 7,200 gross acres and 2,400 net mineral acres of land in North Dakota.

Bakken Resources Acreage Deal Highlights

767 net mineral acres sold in McKenzie County, ND
$10,250 per net mineral acre
Total price for deal is $7,871,248
~412% increase on original investment of $1,535,000 in Nov. 2010

Read the full release: Bakken Resources Inc. Acreage Deal

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

January 29, 2014 Kirk Eggleston

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.

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

December 4, 2013 R.T. Dukes

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.

Bakken Deals Account for 33% of U.S. Shale Deals in Q3

November 8, 2013 R.T. Dukes

Oasis Petroleum Bakken Acreage Map - Acquisition Included

There were $1.8 billion in Bakken deals in the third quarter and that led all shale plays in terms of dollar value. There were $16.4 billion worth of deals in the third quarter and $5.4 were attributable to assets in shale plays.

The Eagle Ford in South Texas led with seven deals compared to the Bakken's three, but trailed the Bakken in total deal value by $100 million.

PWC only tracks deals with a value of more than $50 million. We actually covered four deals in the quarter:

Read the full oil and gas divestitures report at pwc.com

NRP - Sundance Reach $35.5 Million Bakken Deal

November 1, 2013 R.T. Dukes

Natural Resource Partners (NRP) has agreed to acquire non-operated working interests in the Bakken from Sundance Energy for $35.5 million.

“This is NRP’s second acquisition of producing, non-operated working interests in the Bakken/Three Forks play, which will grow and further diversify NRP’s revenue going forward.”

— Nick Carter, NRP's COO.

The deal includes 77 producing wells and associated acreage in Dunn, McKenzie, and Mountrail counties. All leases are held by production. NRP plans to participate in future development on the properties.

Read the full release at nrplp.com