SSN 0.00% 1.5¢ samson oil & gas limited

what a time, page-38

  1. 118 Posts.
    What's this all about from Million Dollar Way site: MHR partnering with SSN??

    http://milliondollarway.blogspot.com/
    Reason for SSN Move? Thoughts -- Bakken, North Dakota, USA
    Link here.

    Magnum Hunter Resources acquires Bakken acreage through acquisition of NuLoch, Inc.
    Will partner with Samson Oil and Gas and Baytex in the Williston Basin
    ----------------------------------

    Here's the 'Link here...' info:
    * here's the important stuff down at the bottom of the blog:

    Explains recent price movement in Samson: new MHR management wants to drill in North Dakota and has partnered with SSN and Baytex

    http://milliondollarway.blogspot.com/2011/01/mhr-acquires-nuloch-resoures-draft-more.html

    MHR Acquires NuLoch Resoures -- Bakken, North Dakota, USA
    MHR acquires NuLoch Resources

    Magnum Hunter Resources
    Corporate Presentation: January, 2011

    Market cap: $500 million
    Over last 18 months, new management with new strategy
    Strategy: acquire and operate properties in Eagle Ford, Marcellus, and Williston Basin (Bakken/TFS/Madison)
    Current Mix: Until today -- no CAPEX in the Bakken for 2011 (slide 5)
    The big jump in production started in 1Q10
    Production: 600 boe/day 4Q09 --> 2,800 boe/day 4Q10 (estimate)
    Bakken acreage: 15,000 gross acres; MHR interest 43%, so I assume 6,450 net acres
    Bakken acreage: not in the best Bakken; Burke, Renville, Ward, Bottineau, McHenry counties
    Bakken: 3 hz wells drilled 4Q09 with IP of ~600 boe (gross) combined
    Recently announced acquisitions: NuLoch Resources -- $327 million; NGAS -- $98 million

    Nuloch Resources, Inc. Acquisition (some numbers rounded)

    $327 million acquisition
    Reserves: est proved reserves of 6 million boe; 85% crude; est probable, 3 million bbls
    14 net Bakken/TFS wells producing; approx 1,550 boe/d productive capacity
    71,600 net acres in Williston Basin (32,900 in Divide and Burke counties; 38,700 acres in Saskatchewan, right across the border from North Dakota); currently 1,070 boe/day productive capacity
    ND acreage: most of the acreage is in Divide county (24,500 net acres); other, Burke (6,700 net acres)
    50,680 net acres in Alberta; currently 480 boe/day (50% light oil)
    Approx 267 net identified Williston Basin drilling locations (Bakken/Three Forks Sanish)
    No outstanding long term debt
    Expected to close on / before April 30, 2011
    Joint venture arrangements with operators in ND to include: Samson, Baytex
    Nuloch Capital Expenditure Schedule

    2010 CAPEX: $30 million in North Dakota
    2011E CAPEX: $36 million in North Dakota
    $1 Billion Market Capitalization

    After NuLoch and NGAS acquisitions
    NGAS: Marcellus natural gas asset
    First knee-jerk thoughts:

    NGAS a natural gas asset -- okay
    Only 54% of the new acreage in the Williston Basin is in North Dakota
    Significant increase in Bakken acreage, but not "prime" Bakken
    Explains recent price movement in Samson: new MHR management wants to drill in North Dakota and has partnered with SSN and Baytex
    The "Bakken" cachet will move price action on companies involved, but need to see results of some wells; one big well can make a big difference in these small companies
    A $1 billion market cap company overnight (MHR was a $500 million company before this acquisition) -- the deal is yet to close
 
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