docFinder alert PLS PLS
Week of May 14, 2012Volume 2, No. 21

$ per Acre : Find the "Needle in the Haystack"

Use docFinder. Gain expertise on acreage valuations.


Bakken : Divide County


May 17, 2012

Full Presentation


Wolfcamp : Permian

$3,700 to $5,000/Acre

May 9, 2012

Full Presentation

  This docFinder Alert ($ per Acre, Finding the Needle in the Haystack) shows the power of the database.  The mission?  Find benchmark values for $ per acre in various resource plays -- and find it quickly, in hours -- not days or weeks. And don't miss one. 


With PLS' docFinder database, clients for the first time have the ability to access and mine the most comprehensive set of data available of its kind.  AND, to do it with an intuitive, accurate and user friendly system.  It is a one of a kind tool that is a "Must Have" for serious players in oil and gas. Successful decision makers understand the value of high quality, comprehensive and accessible data intelligence. 


 Shown above left is an excellent slide from Magnum Hunter Resources.  MHR acquired Baytex Energy's assets out of the Samson operated area of the Bakken/Three Forks Sanish in Divide County, North Dakota for $311 MM cash.  The deal raises MHR's non-op interest from 10% to 47.5%.   METRICS:  Importantly, the MHR slide provides a definitive benchmark on MHR's view of the valuation.  For the reserves, MHR paid 100% of Proved (PDP+PDNP+PUD PV10 value), or $150.6 MM ($17.35 per BOE proved, 16% PDP).  Furthermore, $/BOE PDP is $41.29 and $/BOE PUD is $12.78.  And finally, the undeveloped acreage not associated with proved reserves is valued at $3,663 per acre as of April 18, 2012 -- the announcement date.


Shown above right is a slide from Forest Oil highlighting Permian basin oil plays that also provides some excellent intelligence on value creation in the Wolfcamp play.  First, Forest was able to assemble 114,500 net acres prospective for the Wolfbone and Wolfcamp plays as an early mover for an average price of less than $1,300 per acre.  Second, in the Wolfcamp play, Forest has 51,500 acres HBP with 500 prospective locations outside of locations already with proved reserves.  Third, and most important to this mission, is that acreage adjacent to Forest's position in the Wolfcamp has recently transacted in the range of $3,700 to $5,000 per acre


More Below.

Shown below are additional select slides for this mission.  Examples include Eagle Ford acreage values from a Matador Resources presentation, a pure D-J basin play from Synergy Resources, a case study on resource play value creation from SandRidge Energy, and an excellent data slide for acreage values from EnCap Investments.

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    featured.slides from docFinder

    Slide Slide Slide Slide

    Eagle Ford

    $10,000 to $25,000


    April 18, 2012


    Early in at $95 


    April 13, 2012




    May 3, 2012


    $ per Acre

    By Play


    April 11, 2012

    Matador Resources completed its IPO on 2/7/12 at $12/share and as of 5/17/12 has a market cap of $436MM.  Oil production is expected to increase nearly 10X in 2012.  With 50,739 gross (28,673 net) acres in the liquids and oil fairway of the Eagle Ford, Matador boasts a leading Eagle Ford exposure as measured by net acres/EV.  The slide above shows Matador's acreage in relation to Eagle Ford transactions ranging from $10,000 to $25,000 per acre.


    Synergy Resources is an independent D-J basin operator with 176,601 net acres. Market cap is $155 MM. Slide above shows an early mover entry price of $95 per acre for the position. Current upside includes 156 net potential horizontal locations in the Wattenberg field (12,506 acres).  In 2012, Synergy expects to get 6 - 10 AFE's on horizontal Niobrara wells.  Its first well (Wake e24-77HN), operated by Noble, was spud Jan 30 and is now producing.

    Slide above also shows the advantage of an early mover. SandRidge ($2.4 billion market cap) assembled 2.2 MM acres in the Mississippian play at $215 per acre (total $470 MM). Through monetizations, SD sold 537,000 acres at an implied value of $4,600 per acre (roughly 21X cost). At an implied $4,600/acre, the remaining position is $7.8 billion.  The number grows to $24.8 billion ($14,600/acre) on a Resource NAV basis.


    Courtesy of EnCap Investments, the slide above demonstrates compelling market factors for unconventional resource plays -- which are driving Encap's recent investments. The data shows $/acre by various plays over time as well transaction type.  Support by the public markets for resource companies drives much of this activity. Conventional assets are largely trading at PDP values versus multiples of PDP for unconventional assets.


    Full Presentation

    Full Presentation

    Full Presentation

    Full Presentation

    featured.transactions from PLS global M&A database

    5/15/12Aurora Oil & Gas acquires an additional 6% in Eagle Ford Sugarloaf AMI$95 MM
    5/14/12X-Change acquires additional Montana Bakken acreage$15 MM
    5/13/12Concho acquires Three Rivers Operating Company in Permian$1,000 MM
    5/11/12PDC Energy acquires Niobrara assets from Merit Energy$331 MM

    Source: PLS M&A Database