PetroShale expands Bakken assets PetroShale expands Bakken assets
11/23/2014
Bakken non-operator PetroShale executed its largest Bakken drilling program incompany history during the third quarter with $10.7 million directed toward drilling and completions.
To do so, it needed to allocate capital across its core area where high-producing wells have provided quick payouts and attractive rates of return. The company is currently drilling or completing 26 gross (2.2 net) wells which it anticipates will make substantial impacts to its first and second quarter 2015 operational and financial results.
Quarter of investments
The third quarter was one of investment with half of the $26.6 million the company spent in the first nine months on more more than 21 acquisitions in North Dakota spent in the quarter.
“These transactions added further oil and gas leases in McKenzie, Williams and Mountrail counties, providing existing or potential working interest in multiple drilling spacing units with associated proved undeveloped or probable reserves,” the company said in a Nov. 17 statement.
The company also purchased working interests in wells at varying stages of drilling and assumed the related capital obligations to conclude drilling and completion of those wells. The company’s focus on growing and expanding its assets allowed earnings of $649,000 before interest, taxes, depreciation and amortization in the third quarter, which is a 5 percent increase year-over-year.
Production averaged 248 barrels of oil equivalent per day during the third quarter which showed strong growth generating $1.6 million in royalties revenue. In light of commodity price volatility, PetroShale considers itself well-positioned to meet anticipated capital expenditures over the next 12 months as a result of its $50 million subordinated loan facility coupled with its $10 million senior credit facility.
“With continued drilling, production and reserves growth, we anticipate being able to enhance this flexibility over time as the strength and magnitude of the assets grows,” the company said.
- Maxine Herr