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
