Triangle recently acquired 9,354 net acres (in two pieces from two sellers), nearly all of it contiguous with the company's core McKenzie County position, as the company fills in donut holes in its core. This is good real estate and it brings Triangle's core Bakken acreage (in North Dakota) to 44,564 net acres (or nearly a decade of drilling at the current run rate on a pretty conservative well count case and that scenario ignores their acreage in Montana entirely, which is fair since it won't be a focus for at least another year but does have cheap lease extension options). The acquisition brings with it current production of 1,150 BOEpd, and for a total deal cost of $103.4 mm in cash plus 0.325 mm shares (about $2.3 mm worth) plus 582 non operated acres (netted out of the preceding total), that yields a production adjusted per acre value of just $1,465 per acre for largely operated leases. That's a bargain for core area operated acreage.
To orient yourself, the majority of Triangle's activity to date and that of this acreage is west of Kodiak's (KOG) Koala and Smokey areas, in McKenzie County. We expect another round of strong results out of Kodiak's 3Q call regarding its Smokey "cubed spacing" pilot, which could provide catalysts for Triangle as its acreage should also be prospective for multiple benches of the Three Forks.