mississippian value to rfe, page-17

Hi WB,

Refering back to the start of this thread, this might be of interest. And yes, your calculator is correct when you work of the $ per flowing barrel of oil.

"We maintain our Sector Perform rating. Marathon is buying Eagle Ford shale acreage from Hilcorp Resources for $3.5 billion that currently produces 7,000 boepd [barrels of oil equivalent per day]. The acquisition includes 141,000 net acres....and will effectively double Marathon's total Eagle Ford Shale acreage position to approximately 285,000 net acres. Marathon expects year-end 2011 production of 12,000 boepd, of which 80% is liquids production. The transaction is expected to close in 4Q11. Acreage costs: According to [our] analyst, the deal implies a value of $21,000/acre, which accounts for 7,000 boepd of net production. The recent "record" price for Eagle Ford shale acreage by the Korean National Oil Company in a [joint venture] with Anadarko was $16,000/acre (adjusted).... This transaction increases the company's overall upstream-production volume growth target from 3% to 5% a year to 5% to 7% a year [compounded annual growth rate, 2010-16, excluding asset sales). Market cap: $38.5 billion"

- Barron's Research Report