Who the heck is QEP and where did they get a billion-four?
Press release via Equities.com:
DirectorsQEP Resources Inc. ("QEP" or the "Company"), today announced that its wholly owned subsidiary QEP Energy has entered into two definitive agreements with multiple sellers to acquire significant crude oil development properties in the Williston Basin for an aggregate purchase price of approximately $1.38 billion (the "Acquisition"). The properties are located in Williams and McKenzie counties of North Dakota, approximately 12 miles west of QEP's existing core acreage in the Williston Basin.Acquisition Highlights:Total consideration of approximately $1.38 billion in cash, subject to customary pre-closing and post-closing adjustments Effective date of July 1, 2012, with estimated closing date on or before September 27, 2012 Aggregate current net production approximately 10,500 barrels of oil equivalent per day (Boepd) Aggregate net proved and probable reserves of approximately 125 million barrels of oil equivalent (MMBoe), comprised of approximately 81% crude oil, 9% NGL and 10% natural gas Approximately 27,600 net acres of predominantly fee simple mineral leases with an average 80% net revenue interest (NRI) Approximately 90% of aggregate net acreage to be acquired will be operated by QEP after closing (presently operated by Helis Oil & Gas Company LLC of New Orleans, Louisiana) 24 operated spacing units with an average gross working interest of 82% with an average NRI of 66% 27 non-operated spacing units with an average gross working interest of 10% with an average NRI of 8% Above Williston Basin-average well estimated ultimate recoveries or EURs for both Bakken and Three Forks formations in the contiguous, operated acreage block. For long-lateral wells drilled after January 1, 2010: Average Bakken EUR of 1,160 thousand barrels of oil equivalent (MBoe) Average Three Forks EUR of 990 MBoe The Bakken and Three Forks formations are both prospective across all of the acreage and will be developed by separate horizontal wells targeting each formation Aggregate of 72 gross (29 net) developed locations and 301 gross (146 net) undeveloped locations QEP estimates future net development capital for all acquired assets to be approximately $1.59 billion Acquisition will increase QEP's net acreage in the Williston Basin to approximately 118,000 acres The company expects to fund the Acquisition with proceeds from its revolving credit facility and cash on hand...MORE
I am stunned that I did not know of these folks.
[not as sharp as we think we are -ed]