QEP Resources added Bakken acreage for $1.3 billion. The company acquired 27,600 net acres that have production of 10,500 boe/d. Net proved and probable reserves add up to more than 125 million barrels of oil equivalent.
Reserves are 81% oil, 9% NGLs, and 10% natural gas. The company's average net revenue interest is 80% and the company will operate approximately 90% of the acreage acquired.
Most of the assets being acquired were owned by Black Hills E&P and Helis Oil & Gas.
QEP disclosed the following:
- The properties are prospective for both the Bakken and Three Forks
- There 72 gross (29 net) developed locations and 301 gross (146 net) undeveloped locations
- Future developed capital is estimated at $1.59 billion
- QEP Resources now has 118,000 net Bakken acres.
"The Acquisition will add a new contiguous block of QEP-operated acreage in a localized 'sweet spot' for both the Bakken and Three Forks formations, as evidenced by above average well performance and EURs from wells drilled to-date in both reservoirs," said Chuck Stanley, Chairman, President and CEO of QEP. "To drive operational efficiency, we have historically targeted the best rock in contiguous operated acreage blocks in the basins in which we operate. The Acquisition meets our criteria perfectly. Further, the Acquisition gives us a greater degree of operational flexibility in allocating rigs and personnel on our various assets in North Dakota. The Acquisition will allow our talented team of drilling and completion specialists to achieve the scale necessary to improve capital and operating efficiencies and drive down costs. We expect the growth potential of these assets to have a significant impact on our overall production, and more specifically on our crude oil production," Stanley added.