what a time, page-38

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