Yes, but they also paid 11.7 million shares (currently $62/share) in addition to the 1,85 billion!
Anyway you look at this, it confirms that the Bakken is no micro-cap pipe dream.
"XTO, a Fort Worth domestic natural gas producer, said Wednesday that it will acquire producing properties and undeveloped acreage from Dallas-based Headington Oil Co. for $1.85 billion."
The deal, which includes $1.06 billion in cash and 11.7 million shares of XTO(NYSE: XTO) stock, is for 352,000 acres of Bakken Shale leasehold in Montana and North Dakota. Upon closing, the acquisition will add about 10,000 barrels of oil equivalent per day to the company's production base.
$1.85billion divided by 352000 acres =$5256 per acre plus you have the 10,000 bbls of oil per day that they pump,these numbers are from the xto site. This is still half the price that nog is trading for.
this works out to $5000 an acre leased and total oil of 10,000 bbls a day while nog at present price would be $10,000 per acre with less than 200 bbls per day for their share of production.The XTO purchase shows nog at $5 is overpriced.what will happen in 4-5 years when their current leases expire and less than 20% have been drilled on . nog will lose most of them to real drillers such as hess ,clr, eog.