This recent deal in the Bakken shows us how much confidence the market now has in this play. Take $8,500 X the number of acres held by BEXP.
http://www.bloomberg.com/news/2010-11-1 ... cmpid=yhoo
Bakken
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prince_jake_33
- Posts: 242
- Joined: Mon Apr 26, 2010 2:21 pm
Re: Bakken
Thats about 25$per acre. 370000 acres times 8000$/acre divided by 116,000,000 acres
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prince_jake_33
- Posts: 242
- Joined: Mon Apr 26, 2010 2:21 pm
Re: Bakken
KOG has about 70000 acres at 8000$ per acre and 135,000,000 shares ,that would be worth about 4$per share.
Re: Bakken
My Fair Value estimate for KOG is $5.50. See my forecast model on the website for details on how I get there.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Bakken
NEW YORK--(BUSINESS WIRE)-- Hess Corporation (NYSE:HES - News) announced today that it has agreed to acquire 167,000 net acres in the Bakken oil shale play in North Dakota from TRZ Energy, LLC for $1,050 million in cash.
The properties being acquired are located near Hess’ existing acreage and have current net production of approximately 4,400 boe/d.
"This acquisition strengthens our leading land position in the Bakken, leverages our operating capabilities and infrastructure and will contribute to future reserve and production growth," said Greg Hill, President of Worldwide Exploration and Production at Hess.
The transaction has an effective date of October 1, 2010 and is expected to close by December 28, 2010
The Hess transaction is at least the third Bakken acquisition announced in the past week. Williams Cos. said Nov. 15 that it agreed to buy 85,800 net acres in the formation for $925 million. Also that day, Plains All American Pipeline LP said it agreed to buy crude oil gathering and transportation assets related to the Bakken in a deal valued at $210 million.
My take:
$238,600 per flowing boe/d (lots of undeveloped acreage so not a valid number)
$6,287 per acre
Hess is bullish on oil prices
The acreage fits well with other Hess assets in the region
The market likes the deal
Two analysts raised their price targets for HES, B of A raised their price target to $85/share.
The properties being acquired are located near Hess’ existing acreage and have current net production of approximately 4,400 boe/d.
"This acquisition strengthens our leading land position in the Bakken, leverages our operating capabilities and infrastructure and will contribute to future reserve and production growth," said Greg Hill, President of Worldwide Exploration and Production at Hess.
The transaction has an effective date of October 1, 2010 and is expected to close by December 28, 2010
The Hess transaction is at least the third Bakken acquisition announced in the past week. Williams Cos. said Nov. 15 that it agreed to buy 85,800 net acres in the formation for $925 million. Also that day, Plains All American Pipeline LP said it agreed to buy crude oil gathering and transportation assets related to the Bakken in a deal valued at $210 million.
My take:
$238,600 per flowing boe/d (lots of undeveloped acreage so not a valid number)
$6,287 per acre
Hess is bullish on oil prices
The acreage fits well with other Hess assets in the region
The market likes the deal
Two analysts raised their price targets for HES, B of A raised their price target to $85/share.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group