See You in the Next Life, Sleeping Giant

See You in the Next Life, Sleeping Giant

Alberta-based Enerplus added more “plusses” this year to its operating portfolio with two acquisitions that have nearly quintupled the E&P’s footprint in the Williston with 800,000 acres, making it one of the basin’s largest producers. Operations in the Williston now account for 90% of the company’s total U.S. oil and gas production with 2021 2Q results of 115 MBOEPD. Reese Energy Consulting today is following the latest news from Enerplus, which has announced the sale of its legacy assets in the Williston to an undisclosed buyer for $115 million, plus contingency payments of $5 million based on set oil price averages through 2023. The deal marks a wave so long to the company’s first U.S. acquisition in 2005 of Lyco Energy for $421 million that included the Sleeping Giant oilfield in Mont., (the big prize) and the Russian Creek area in N.D. For the new buyer, both assets include a combined 244 wells currently producing 3 MBOEPD with estimated 2022 net operating income of $22 million, based on a $60 WTI price. Enerplus says it will use the proceeds to achieve a $400 million debt reduction plan targeted for 1Q next year.

What do you think? Learn more about REC and our Bakken oil and gas expertise at www.ReeseEnergyConsulting.com.

Enerplus Corporation

Enerplus Corporation is one of Canada’s largest independent oil and gas producers. The company holds oil and natural gas property interest in the United States and in western Canada, in the provinces of Alberta, British Columbia and Saskatchewan.

www.enerplus.com

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Wavin’ Bye to the Bakken

Wavin’ Bye to the Bakken

​It’s been a nice ride up North for Texas-based Comstock and ConocoPhillips, but now it’s time to say so long to the Williston Basin. Reese Energy Consulting today is following the latest news from Comstock and Conoco, which have put their respective Bakken assets on the market. As more operators shed non-core assets amid higher oil prices, the environment is ripe for deal-making in the nation’s most prolific shale basins and we expect even more going forward this year. Comstock, which in 2019 acquired Covey Park for $2.2 billion and has since emerged as a dominant player in the Haynesville, looks to offload its N.D., properties valued at $200 million. They include a non-operated working interest in 436 wellbores and 427 wells that produced an average 6.4 MBPD in the first six months this year. Conoco, which in January acquired Concho Resources’ massive Permian assets for $13.3 billion, values its N.D., and Mont., positions also at $200 million. But this is a much larger package for the right buyer. The company operates 630,000 net acres and 840 wells in the Bakken producing an average 78 MBPD.

What do you think? Learn more about REC and our breadth of energy services and expertise at www.ReeseEnergyConsulting.com.

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