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Bullboard - Stock Discussion Forum Zargon Oil & Gas Ltd ZARFF

Zargon Oil & Gas Ltd is a producer of oil and gas. It is engaged in the exploration, development, and production of oil and natural gas in Canada and the United States. The company works on three phases of oil reservoir exploitation which include Primary recovery, Waterflood recovery, and Tertiary recovery. Its portfolio includes Alberta plains north, Alberta plains south and Williston basin... see more

GREY:ZARFF - Post Discussion

Zargon Oil & Gas Ltd > NOG pays CAD$48,200/boepd for NON-operated oily ND wells
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Post by stockfy on May 16, 2018 5:43am

NOG pays CAD$48,200/boepd for NON-operated oily ND wells

Another deal in the Williston Basin was out a few days ago with very positive implications for ZAR's North Dakota asset.

NOG paid US$52 million (US$40 million in cash and 6 million in shares valued at US$2 per share) and acquired 1,380 boepd production including 1,319 net acres.

This is NON-operated production which is a big minus versus ZAR's operated production in North Dakota.
 
NOG's deal translates into US$37,700/boepd or CAD$48,200/boepd for a NON-operated asset. Actually, NOG bought many small working interests in many wells, so we talk about small working interests here and there without any control on these wells:
 
 
"On April 26, 2018 Northern announced that it had entered into a definitive agreement to acquire producing assets and acreage in the core of the Williston Basin in North Dakota for total consideration of $40 million in cash (subject to adjustments) and 6 million shares of Northern common stock. The assets, which are expected to generate approximately $19 million of cash flow from operations in 2018, had estimated February production of 1,380 Boe per day and included 1,319 net acres that are 100% held by production with an average net revenue interest of 86%. "

 
https://ir.northernoil.com/news-releases/news-release-details/northern-oil-and-gas-inc-announces-accretive-acquisition-core
 
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