There has been much discussion about transactions in the SWISH AOI that could provide some reference point for a BRK sale.
Finally found the CLR SCOOP acreage purchase detail I was looking for the the October 2020 acquisition of Casillas Energy, which was primarily acreage in the SWISH AOI. Should have looked through the CLR annual report in more detail earlier.
From the 2020 CLR annual report .
View attachment 4913089and
View attachment 4913095In Oct 202o, CLR purchased the SCOOP assets from Casillas ( a large PE group) for US$ 162.8 million dollars. This included 19,500 net mineral acres which held " insignificant amounts of production and proved reserves" to quote CLR.
Points to note
1) Oil and gas prices in 2020 were significantly lower than they are now and projected to be for the short -medium term.
View attachment 4913110and
View attachment 49131162) The CLR 2020 annual report shows that the purchases of minerals in place for 2020 was 7.817 MMBOE booked, which would have been reserves attributable to the Casillas deal. ( love it when ~7.8 MMBOE is considered insignificant!) Casillas had drilled 3 wells in 3 separate DSU's by that time as highlighted by the BRK presentation from November 2022, before the Jewell well was drilled. There will be probably another 8 MMBOE unbooked reserves on that acreage.
View attachment 4913176The Flash well was on a multi-unit DSU of 1280 acres, the Boardwalk was on a 1120 acre multi- unit DSU and the Park Place multi- unit DSU was 960 acres . So out of the 19500 Acres, at most only 3360 net acres were HBP by horizontal wells. Possibly some other acreage was HBP by legacy residual vertical wells on 20-40 acre DSU's but the vast majority was undrilled leasehold acreage.
Most of the US$162.8million value would have been attributable to the horizontal well HBP acreage. If we estimate the undrilled leasehold acreage was ~15000 acres with an average value of US1000 per acre ( most of the acreage picked up in 2018-2019 before the SWISH area was proven at US$500-2000 per acre ) then it is not unreasonable to say that the HBP proven Casillas acreage ( ~3400 acres) which held no more than 7.8 MMBOE booked PDP and PUD reserves was valued at sale at US$140-150 million , during a time when oil was selling for US$40-45 per barrel, and gas was selling at ~US$ 2.5 per MMCF.
As a second source we have some information from PHX, a royalty company which has assets across the USA .
This company's purchases very small royalty positions in developed, undeveloped acreage so it's transactions metrics are not analogous to what BRK is selling, but of interest is one of the locations it is very active in.
CLR have a number of SCOOP projects called Springboard I, II , III and IV ... (
@peto2810 just for you mate!... finally found III and IV! ) and PHX have invested heavily in those projects.
View attachment 4913284PHX say the Casillas deal was for $200 million
View attachment 4913290and
View attachment 4913293You can see the Jewell well in the right of 1S-3W in both graphics
View attachment 4913296 and then you can see Rangers just next to Sundance Kid and Flames as the blue line to the left of Jewell.
PHX rate the Sringboard III, which is essentially the SWISH AOI , which was first " discovered' by BRK though Black Mesa as having the highest resource in place per DSU in the mid continent!
Now , if that isn't a testament to the quality of the BRK/ BM team then I don't know what would be.
Cheers
Dan
(20min delay)