Post by
JohnJBond on Jul 07, 2022 9:55am
Viking
CPG sold its 4000 BOE of Viking production for $260 million.
That is about $65,000 per flowing barrel.
OBE has around 1800 BOE of Viking production - either present or soon (given their recent drilling)
A similar price metric values that at about $117 million
Comment by
fortunefavorsus on Jul 07, 2022 2:46pm
At one time OBE had four gas plants in Viking. In the current environment you would think those would be worth something in addition to the 1800 BOE.
Comment by
fortunefavorsus on Jul 07, 2022 2:49pm
Lets not forget OBE is thought to have some of the better acreage. I think the recent drilling is to show to potential buyers the quality. So maybe $140 million? Why not just sell and get debt down and do a small refinance of the note? I doubt this would ever become a focus for them.