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cquisition Highlights

• 11,672 gross (9,140 net) leasehold acres near existing Parsley leasehold in Glasscock County, Texas
• Mineral and overriding royalty interests boost net revenue interest by approximately 5% on average
• Estimated current net production of approximately 270 Boe per day from 67 gross (60 net) vertical wells
• 240 gross (215 net) horizontal drilling locations in the Lower Spraberry, Wolfcamp A, and Wolfcamp B formations, based on 660' between-well spacing, with an estimated average lateral length of approximately 7,500'
• Additional horizontal drilling locations in the Middle Spraberry, Wolfcamp C, and Cline formations
• High average working interest of approximately 92% on identified drilling locations
• 99% held by production
• Pre-existing facilities and infrastructure, including five saltwater disposal wells, facilitate ongoing development
• Scheduled to close on or before October 4, 2016, subject to the satisfaction of customary closing conditions

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CXO expanding Midland footprint with acquisition of private E&P Reliance Energy ($136.44 B) We estimate CXO is paying ~$28k/acre (TPHe ~$35k/acre excl. net acres with only deeper rights) for 40k net acres (99% WI) in the Midland Basin spread ~evenly across Andrews, Martin and Ector counties, net of $500mm for 10mboepd (67% oil) of low-decline PDP production. Deal worth a total of $1.625B ($1.1B cash, 3.96mm shares of common stock).

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Hilcorp to acquire Samson

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Who did Parsley buy that acreage from?

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Hilcorp to acquire Samson

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Where are you seeing this? I haven't been able to find any sources. Thanks.

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So what exactly does the end of this downturn look like?

A) OPEC slows down production and price of oil goes back up to $70-$80 range.

B) Market consolidation and advances in technology lower production costs to the point that companies can make a profit at $50 a barrel.

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These two Range positions are being offered because they way underpaid on their offers when they bought MRD and several engineers left so heads up.

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So what exactly does the end of this downturn look like?

A) OPEC slows down production and price of oil goes back up to $70-$80 range.

B) Market consolidation and advances in technology lower production costs to the point that companies can make a profit at $50 a barrel.

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It's about revenue, not operating income. Their cost of goods sold basically runs their economy. So if Aramco takes a loss, it isn't THAT bad because they are still paying living wages to their citizens. Now, obviously back-to-back-to-back losses isn't exactly sustainable, but they don't have as much flexibility to shrink operations at the snap of a finger because so much of their economy is based on getting a steady paycheck.

The flip-side is that there is very little long-term benefit to holding onto their reserves. With the newer technology, we're discovering way more resources all over the world so it no longer looks like they would be able to dictate a higher price down the road. You might as well pump it out and sell it now while you can than to wait 60 years for some other technology to make your oil fields worthless.

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Can someone explain why Saudi cares so much about market share?

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OKLAHOMA CITY, Aug. 18, 2016 /PRNewswire/ -- Continental announced today that it has signed a definitive purchase and sale agreement with an undisclosed buyer to sell non-strategic properties in North Dakota and Montana for $222 million. The sale includes 68,000 net acres of leasehold primarily in western Williams County, North Dakota, and 12,000 net acres of leasehold in Roosevelt County, Montana. The sale also includes net production of approximately 2,800 barrels of oil equivalent (Boe) per day. The agreement provides for customary closing conditions and adjustments.


"This is our third sale of non-strategic assets this year, with total expected proceeds of more than $600 million. We plan to apply proceeds to reduce debt and strengthen our balance sheet," said Harold Hamm, Chairman and Chief Executive Officer.

In May 2016, the Company announced the sale of approximately 132,000 net acres of leasehold in the Washakie Basin in Wyoming for $110 million. On August 3, 2016, Continental announced it had signed a definitive purchase and sale agreement with an undisclosed buyer to sell approximately 29,500 net acres of non-strategic leasehold in the eastern SCOOP play in Oklahoma for $281 million.
"Our guidance for the year has not changed. The combination of Continental's high quality drilling inventory, strong balance sheet and $560 million investment in drilled but uncompleted wells (DUCs) provides the Company with a robust platform for high-value future growth," Mr. Hamm said. The $560 million investment includes both operated and non-operated DUCs, approximately 80% of which are in North Dakota.

Continental currently has approximately 215 gross operated DUCs in inventory, of which approximately 165 are in the Bakken. The Company expects the total to grow to approximately 240 gross operated DUCs at year-end 2016, with approximately 190 in the Bakken. The Company said its Bakken DUCs have an average estimated ultimate recovery (EUR) of 850,000 Boe per well and can be completed at an average cost of between $3.0 million to $3.5 million per well.

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Keep in mind that this time, supply increased so much, so fast due to a major technological advancement while demand was tapering off.

So the issues impacting the cartel related to game theory like self interest, quota cheating, etc were all compounded.

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Hey guys, I know stuff is tight out there, but if you know of any reqs for inexperienced/entry level PETE's out there, shoot me a PM. Passing this along for a good Ag who isn't on the boards. C/o '15 and has a year experience managing production and leases in the Eagleford. Can provide resume upon request.

Thanks in advance y'all.

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