RE:RE:RE:RE:RE:RE:Tourmaline Oil buys two privately held oil and gas firmsjupiter =
20k boe//d liquids
30% of total.
what is the punishment in alberta for grand larceny?
BeatTheOddsSqua wrote: A little bit of math on these deals shows:
Modern - $144 million / 10,000 Boe/day = $14,400 per producing Boe/day
Jupiter - $ 626 million / 66,000 = $9,343 per producing Boe/day
Ouch!
Modern comes in below Pony dry gas distress sale metrics of $16,600 per producing Boe/day while it is weighted 25% oil (Cardium) and 75% gas.
Jupiter appears much worse at $ 9,343 per producing Boe/day. They were producing 300 Mmcf/day and 16,000 Bbls/day liquids. Similar to Pony's production but without the liquids I believe.
This deal looks like investors (Apollo and Arc) just wanted to get out of these assets at any price and Tourmaline left them a little bit of upside by including shares in the deal.
Modern and Jupiter did all the heavy lifting with the securing leases, mapping out the oil and gas pools, drilling, completing and tie-ing in all of the wells. They built the facilities, spent a lot of capital and man hours (5 years) only to produce their product during a period of low commodity pricing. Oil and gas is a tough game.
Outstanding deal for Tourmaline! They come in and scoop up massive reserves, drill ready locations, production and facilities for pennies on the dollar. Tourmaline could not replicate the production and reserves they acquired for the price of this deal.
Luckily Crew is not in the same situation.
Although they have > $300 million in debt, they are drilling and completing up to 17 new wells?
I cannot wait to read the Q3 quarterly report to find out how they are paying for the 10 additional wells.
As always please check my math.