Seeking Alpha

NaveenS's  Instablog

NaveenS
Send Message
Product Manager - Derrick Petroleum Services. Working in Oil & Gas Industry for 5+ years. Contributed significantly for Database development for Upstream transactions (http://www.1derrick.com/ma-database). Initially worked as a 'Research Analyst' at Reuters. LinkedIn Profile:... More
My company:
Derrick Petroleum Services
My blog:
1Derrick
  • Bill Barrett Sells Uinta Gas Asset For $371 Million – Metrics: $1.40/MCFE Or $5,436/Daily MCFE 0 comments
    Oct 23, 2013 11:02 AM | about stocks: BBG, VNR

    Bill Barrett has signed an agreement with an undiscloded buyer to sell its West Tavaputs natural gas asset located in Uinta Basin, Utah for a consideration of $371 million. The consideration comprises $325 million cash and $46 million for the purchaser's assumption of the lease financing obligation for compressor units on the property.

    Asset highlights:

    • Approximately 35,000 net acres comprising 300 producing wells
    • 1P reserves as on end-2012 were 265 Bcfe
    • Net production during Q2-2013 was 68 MMcfe/d

    Metrics:

    Ascribing the entire deal value of $371 million to 1P reserves/production yields a metric of $1.40/MCFE or $8.41/BOE and $5,436/Daily MCFE or $32,618/Daily BOE. The value of undeveloped acreage is assumed to be insignificant.

    The metrics in the current transaction is a tad higher when compared to the metrics ($0.977/MCFE or $5.86/BOE and $4,507/Daily MCFE or $27,040/Daily BOE) in the $335 million Colorado and Wyoming gas assets sale to Vanguard Natural Resources LLC in Jan-2013. In the asset sale to Vanguard, undeveloped acreage was estimated at $200/Acre or $41.62 million for 208,100 net acres.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Back To NaveenS's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.