?• TriStar Oil & Gas Ltd., Calgary, (Toronto: TOG) and Crescent Point Energy Trust, Calgary, (Toronto: CPG.UN) plan to acquire assets in southeastern Saskatchewan and Montana from Talisman Energy Inc., Calgary, (NYSE; Toronto: TLM) for C$720 million in cash. The assets include approximately 610,000 net acres (73% in Saskatchewan). Production is more than 8,500 BOE per day. Tristar and Crescent Point report proved reserves of 31.7 million BOE (45.6 million proved plus probable) independently evaluated by GLJ Petroleum Consultants Ltd. as of March 31, 2009. A significant portion of the value is associated with undeveloped land in Saskatchewan of more than 395,000 net acres, including more than 60 net sections within the Bakken play.
Talisman reports proved reserves related to the sale of 20.1 million BOE (34.1 million proved plus probable), evaluated by AJM Petroleum Consultants in March.
TriStar and Crescent Point will each acquire a 50% working interest for approximately C$360 million. The break-up fee is C$72 million.
Assuming a value of C$45 million for undeveloped land, TriStar and Crescent Point each value the deal at C$69,875 per producing barrel based on 4,000 BOE per day, C$13.25 per proved plus probable barrel, and C$19.14 per proved barrel. Analysts at Pritchard Capital Partners value the deal at US$66,700 per flowing BOE and US$17.90 per BOE on proved reserves.
Following closing, Crescent Point and TriStar will sell a portion of the Bakken assets acquired from Talisman to Shelter Bay Energy Inc., a privately held company owned 21% by Crescent Point, for approximately $71 million.
The Bakken assets to be sold include production of approximately 500 BOE per day and 2.5 million barrels of proved reserves (3.5 million barrels proved plus probable). The deal involves 12 net sections of undeveloped Bakken land.
Closing is expected by June 1. Macquarie Capital Markets and BMO Capital Markets advised TriStar. BMO Capital Markets and RBC Capital Markets were advisors to Crescent Point. FirstEnergy Capital Corp. advised Talisman.
• Minnesota-based consulting firm The Marshall-Teichert Group has acquired Fort Worth, Texas-based James Miller and Co. for an undisclosed price.
Recommended Reading
U.S. Shale-catters to IPO Australian Shale Explorer on NYSE
2024-05-04 - Tamboran Resources Corp. is majority owned by Permian wildcatter Bryan Sheffield and chaired by Haynesville and Eagle Ford discovery co-leader Dick Stoneburner.
1Q24 Dividends Declared in the Week of April 29
2024-05-03 - With earnings season in full swing, upstream and midstream companies are declaring quarterly dividends. Here is a selection of dividends announced in the past week.
Analyst Questions Kimmeridge’s Character, Ben Dell Responds
2024-05-02 - The analyst said that “they don’t seem to be particularly good actors.” Ben Dell, Kimmeridge Energy Partners managing partner, told Hart Energy that “our reputation is unparalleled.”
Tellurian Reports Driftwood LNG Progress Amid Low NatGas Production
2024-05-02 - Tellurian’s Driftwood LNG received an extension through 2029 with authorization from the Federal Energy Regulatory Commission and the U.S. Army Corps of Engineers.
Zeta Energy Appoints Michael Everett as COO
2024-05-02 - Prior to joining Zeta Energy, a lithium-sulfur battery developer, Michael Everett previously served as president and COO at Advanced Battery Concepts.