As detailed in the map attached to this press release, the properties primarily target the Middle Bakken and Three Forks zones and include 17,282 net (39,310 gross) acres located in and around Whiting’s acreage in the Missouri Breaks and Hidden Bench prospects in its Western Williston Basin area. The properties include 13 operated 1,280-acre Bakken/Three Forks drilling spacing units with an average working interest of 58% and net revenue interest of 48%. 92% of the acreage is held by production.
Net oil and gas production from the properties is estimated to average 2,420 barrels of oil equivalent (BOE) per day in August 2013. Whiting estimates proved reserves at 17.1 million BOE with 85% of reserves being oil. Whiting also estimates 24% of the reserves are proved developed producing and 76% are proved undeveloped.
James J. Volker, Whiting’s Chairman and CEO, commented, “This acreage expands our presence in our Western Williston Basin area where we have seen recent strong production growth primarily as a result of positive drilling results at our Hidden Bench, Tarpon and Missouri Breaks prospects.”
Looks like the some of the new land is right next to KOG's Koala and Smokey area. With KOG's 12-well pad tests and WLL's improving results, it seems like pretty good land at a reasonable price. Undoubtedly, the seller would not have been able to execute on the land, but WLL should be able to.
Have you done any projections for WLL's Q3 earnings? I'm still coming up with a range of $1.25-$1.50, which should be in the upper end of the range if oil remains high.