you tried to compare the value of HK and ATHL.. you failed to realize that both companies drilling costs per well were going to be roughly the same from here on out.. you miss spoke on value implication.. why would you do that??
Juan Ton Amigo states their well costs are only $700k... you couldn't be more incorrect.. horizontal fracking will be the focus from ECA on the acreage purchased... thus normal well costs of $7 - $10 million... confirmed this with IR rep at ATHL
That's funny, I just talked with the IR rep from Athlon... He said very specifically, the vertical wells that WERE drilled cost about $2-$3 million... However, from here on out, they will be switching to horizontal fracking for almost all of their drilling from here on out.. so ECA bought ATHL based on fracking wells from here on out...
did you just no see the valuation paid for 28,000 boed production on just 140k acres..... you are a fool...
point is, ATHL has only 140m acres ... If you strip out HK's bakken (140m acres) you still have close to 500 m acres of land that is prospective and another 400-500 that is 'sitting there'... mostly woodbine and Utica.. core vs non-core.. What is all that acreage worth if ECA was willing to pay $7 bln for 140m acres..
110m acres in el halcon and 315m in TMS .. plus HK still has productive land in Woodbine and a very small amount in Utica.. total acreage is close to 1 mm acres..
Seems that Athlon was similar in size and production to HK's bakken assets (140k acres 30,000 BOED)... $7 billion for ATHL.. $7 bln would put HK's shares at around $9... You get another $180 mln in interest payments with HK but you get another $394 million in revenue (12,000 BOED).... PLUS another 500 acres of productive land El Halcon TMS.)