Vitesse Energy Grabs 19,000 Net Bakken Acres -Sept. 2014

Bakken Oil Workers
Bakken Oil Workers

Centennial, CO-based Vitesse Energy, LLC has purchased non-operated oil and gas assets in the Williston Basin from EnerVest Operating, LLC for $186.5-million. Included in the deal are working interests in approximately 600 wells and over 19,000 net acres in core Bakken Counties of Williams, McKenzie and Mountrail.

Vitesse CEO Bob Gerrity, said, “this acquisition represents a synergistic addition to our existing high-quality acreage in the core area of the Bakken and Three Forks play, and also provides new growth opportunities in developing areas of the field where technology continues to enhance returns.

The agreement was signed on August 1st, and closed on September 8th. Vitesse Energy, LLC is a subsidiary of U.S.-based holding company Leucadia National Corporation.


Whiting Petroleum Has Record Bakken Production in First Quarter

Whiting Petroleum Bakken Acreage Map
Whiting Petroleum Bakken Acreage Map

Whiting Petroleum had record breaking Bakken production in the first quarter of 2014 of 73,325 boe/d. That's up 27% over the first quarter of 2013. On April 1, 2014, the company claimed to have achieved its' best well result to date in its' Cassandra field in Williams County.

Whiting’s CEO James Volker said, ““Our North Dakota, Colorado and Texas teams overcame one of the most severe winters on record so that we met all of our guidance numbers in the first quarter. We [] achieved our best well result to date at our Cassandra field with the completion of the Kaldahl 11-3H flowing 1,930 BOE/d on April 1, 2014 using a cemented liner.

Whiting's Bakken First Quarter Operations Highlights

In the Missouri Breaks Field (Richland and McKenzie counties, North Dakota), Whiting completed four wells at the end of March and the beginning of April in this area, with an average of 1,206 boe/d. The company used its new coilded tubing fracture stimulation method on one of the wells, and achieved a flow rate of 1,607 boe/d, which was 73% higher than the initial well in the unit.

In the Cassandra Field (Williams County, North Dakota), The Kaldahl 11-3H was completed in the Middle Bakken on April 1, 2014 flowing 1,930 boe/d. That's 104% higher than the 10 prior wells completed in the Middle Bakken formation.

Whiting Petroleum has operations in the Williston Basin covering Mountrail, Stark and Billings counties in North Dakota, and Wibaux County, Montana.


EOG Resources Nearly Doubling Bakken Activity in 2014

EOG Bakken Acreage Map
EOG Bakken Acreage Map

EOG Resources sees the Bakken as a high rate of return growth play, and plans on drilling 80-net wells in 2014.

That's nearly double the number of net-wells drilled in 2013, which was 54. At that rate, the company has a drilling inventory in the Bakken of ~8 years.

Read more: EOG Will Utilize Self Sourced Sand in Bakken Completions

EOG Resources Bakken Development in 2014

EOG Resource's focus area will be in its Bakken core acreage (~90,000 net acres) and the Antelope Extension area.

Based on successful drilling results in the Three Forks formation in the Antelope Extension in 2013, EOG plans on testing additional benches during 2014.

Completion and cost improvements in the play have resulted in EOG deciding to direct more of its capital budget to the Bakken.

EOG is directing a larger percentage of its 2014 capital budget to the Eagle Ford and Bakken where we have tremendous drilling opportunity with excellent rates of return,” said CEO, William Thomas. “By increasing activity in these plays, we expect the momentum and operational efficiencies we’ve created to continue.

In 2013, EOG ramped up its drilling plan from one to four wells per section, while increasing the average recoverable resource per well. More downspacing is expected in 2014.

EOG Resources Bakken Well Highlights

Wayzetta 30-3230H and 31-3230H (Mountrail County)

  • Initial production (IP) of 2,510 b/d and 2,540 b/d crude oil respectively

Wayzetta 35-1920H (Mountrail County)

  • Initial production (IP) of 2,240 b/d crude oil
  • Initial production (IP) of 1.2 mmcf/d natural gas

Hawkeye 2-2501H (McKenzie County)

  • Initial production (IP) of 2,075 b/d crude oil
  • Initial production (IP) of 3.8 mmcf/d natural gas


Bakken Resources Sells Bakken Acreage ~$7.9 Million

McKenzie County, ND
McKenzie County, ND

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.

Read more: Emerald Acquires Bakken Acreage in the Williston for $74.6 Million

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

Read more: Oasis Sells Bakken Acreage - Strong Production Growth in 2014

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

Click to Enlarge
Click to Enlarge

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