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Earthstone Exits Bakken; Unloads Non-Op Property for $27mm

Announced Date
November 20,2017
Deal Value  $mm
27
Net Acres
5,900
Transaction Type
Property
Buyer
Not Disclosed
Seller
Earthstone Energy Inc.
Price Per BOE $
20,000
Source Documents:
   Source Link
Location
Region
Williston Basin

Country
United States

State
North Dakota

County
McKenzie ,Dunn ,Williams ,Billings

Play
Bakken Shale & Three Forks


Production & Reserves
Production
1,021 Boe/d

Reserves
3.6 MMboe (1P Reserves)


Deal Metrics
$/Daily BOE
26,444.66

$/Acre
1,115.25

Transaction Details: 

[Summary: Earthstone announced that it entered into a deal to sell its mostly non-operated Bakken assets to an undisclosed party for $27 million. The deal is expected to close before the end of 2017.

Transaction Summary/Details

  • Leasehold / Land : 5,900 Net Acres
  • Producing Wells : 299 (Gross)
  • Drilling Locations : 155
  • Production (Q3-17) : 1021 (63% Oil)
  • Reserves : 1P 3.6 MMBOE

 

With this sale, the company is exiting the Bakken and shifting its capital and human focus to its 27,000 acres in the Midland Basin.]

Original Release

THE WOODLANDS, Texas, Nov. 20 /BusinessWire/ -- Earthstone Energy, Inc. (NYSE:ESTE) ("Earthstone" or the "Company"), today announced that it has entered into a definitive agreement to sell its Bakken assets for approximately $27 million in cash to an unaffiliated party. The transaction is subject to customary closing conditions and adjustments. The effective date will be December 1, 2017 and is expected to close by year-end 2017.

Robert J. Anderson, Executive Vice President, Corporate Development and Engineering of Earthstone commented, "The sale of our Bakken assets, which are non-operated, represents a further step in Earthstone's continued shift in emphasis to being primarily a Midland Basin focused operator. Over the past 18 months we have established a position in the Midland Basin that stands at approximately 27,000 net acres and approximately 7,000 Boepd. The divestiture of our Bakken assets allows us to continue focusing our human and capital resources on our highly economic assets in the Midland Basin."

About Earthstone Energy, Inc.

Earthstone Energy, Inc. is a growth-oriented, independent energy company engaged in developing and operating oil and gas properties. The Company's primary assets are located in the Midland Basin of west Texas and the Eagle Ford trend of south Texas. Earthstone is traded on NYSE under the symbol "ESTE." For more information, visit the Company's website at www.earthstoneenergy.com.

Williston Basin Deal Activity In Last 12 Months



Related Williston Basin Region's Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategoryDetails
Oct-23-2017 Valorem Energy LLC  Linn Energy, Inc 285 North Dakota  E&P Details
Sep-20-2017 Not Disclosed  Halcon Resources Corp 104 North Dakota  E&P Details
Aug-15-2017 RimRock Oil & Gas  Whiting Petroleum Corp. 500 North Dakota  E&P Details
Jul-11-2017 Bruin E&P Partners  Halcon Resources Corp 1400 North Dakota  E&P Details
Apr-26-2017 Resource Energy Partners LLC  Blue Ridge Mountain Resources Inc. 34.7 North Dakota  E&P Details

Price History



Date Deal Headline Price$/acre
Oct-23-2017 LINN Sells Williston Basin Properties for $285 Million $285.00  Million $14,250
Aug-15-2017 Whiting Sells Fort Berthold Bakken Properties for $500 Million $500.00  Million $16,871
Jul-11-2017 Halcon Sells Bakken Asset; Open to Outright Sale of the Company $1400.00  Million $13,500

Related Earthstone Energy Inc. Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategoryDetails
Sep-15-2017 IOG Capital LP  Earthstone Energy Inc. Texas  E&P Details
Nov-08-2016 Earthstone Energy Inc.  Bold Energy III LLC Texas  E&P Details
Dec-17-2015 Earthstone Energy Inc.  Lynden Energy Corp. 1.9 Texas  E&P Details
Oct-17-2014 Earthstone Energy Inc.,Oak Valley Resources Llc  Parallel Resource Partners Llc,Flatonia Energy Llc Texas  E&P Details
May-15-2014 Earthstone Energy Inc.  Oak Valley Resources Llc 130 North Dakota  E&P Details