Courtesy of Benzinga.
Emerald Oil, Inc. (NYSE: EOX) (“Emerald” or the “Company”) today announced that it has leased 33,851 operated acres in the Williston Basin for approximately $24.7 million in cash.
Leasing Summary
— Low Rider expanded with 14,777 additional net acres — Established three new Emerald operating areas: — Easy Rider (3,179 net acres) in Williams County, ND in the West Nesson Area of the Williston Basin — Emerald Pronghorn sand (2,945 net acres) in Stark and Billings Counties, ND in the core of the Pronghorn field — Emerald Lewis & Clark (12,950 net acres) in McKenzie County, ND south of Low Rider. — Average working interest of 68% across the entire newly leased operated acreage
Current Acreage Position and 2014 Capital Budget Pro forma for the added leasehold, Emerald will now operate approximately 60,000 net acres in the Williston Basin. Emerald will add a third rig during 2014 to develop the recently leased acreage. The preliminary 2014 drilling budget will be approximately $182.0 million to drill 18.2 net wells. A separate land budget of approximately $25.0 million will be deployed in 2014 for operated acreage acquisitions and leasing in the Williston Basin. The 2013 capital budget of approximately $125.0 million will remain the same.
Current Position ——————-
2014 Planned Capital Expenditures ————————— Net Identified Drilling Capex Net Acres Drilling Locations Net Wells ($mm) ——— —————— ———- —————- Total Net Acres Low Rider 35,723 196 12.2 $122.0 Easy Rider 3,179 17 2.0 20.0 Richland 11,140 61 2.0 20.0 Emerald Pronghorn sand 2,945 9 2.0 20.0 Emerald Lewis & Clark 12,950 30 0.0 0.0 ============================================================================
Total Operated 59,867 280 18.2 $182.0 Non-Operated 6,070 33 0.0 0.0 —————————————————————————- Total Williston Basin 65,937 313 18.2 $182.0 —————————————————————————-
2014 Production Guidance In connection with Emerald’s recent acreage leases and the announcement of the 2014 capital budget, Emerald also established a 2014 average annual production forecast of 3,300 BOE/d. This compares to average annual production guidance for 2013 of 1,590 BOE/d, a 108% increase in average annual production guidance. Emerald will establish 2014 quarterly production guidance, year-end exit rate production guidance, and year end operated acreage targets on the 2013 third quarter conference call in early November.
