NCL and Halcon deal

looks to be true.

 

http://www.faqs.org/sec-filings/120702/HALCON-RESOURCES-CORP_8-K/d3...

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Permalink Reply by Jim Litwinowicz on July 9, 2012 at 12:40pm

Good find

Looks like they bought all the rights 50' above the Utica an deeper.  NCL retains shallow rights.  Price was $194 million or $6,100/ net mineral acre.

Permalink Reply by Robert Bond on July 9, 2012 at 12:57pm

Yes this is interesting as a lot of the wells in southern Trumbull and northern Mahoning counties are NCL wells.  Rumors have been around about this for several months.

Permalink Reply by Summer Johnston on July 9, 2012 at 1:36pm

Any thoughts as to why there was such a price disparity between the NCL/Halcon deal and that

of Chesapeake/Everflow Eastern?

Permalink Reply by Jim Litwinowicz on July 9, 2012 at 2:19pm

What was the Everflow deal and was it finalized?

Permalink Reply by Summer Johnston on July 10, 2012 at 1:54am

$1250 an acre.

 

With thanks to the SEC and Google:

 

http://www.sec.gov/Archives/edgar/data/868082/000119312512079787/d3...

 

I thought, similarly to the Halcon deal, that those leases that could be transferred to Ches were but some had defects that they had time to cure in a second closing.

Permalink Reply by Jim Litwinowicz on July 10, 2012 at 3:13am

In the summer of 2010 the Utica was an unknown, yet to be proven. It was only late 2010 or into 2011 that the Utica became well known and had good production numbers.

Plus, Everflow had very few wells and little infrastructure in place, I think.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on July 10, 2012 at 3:31am

Everflow has a ton of wells, they're just mostly on 40 acre spacing and many of them are urban or suburban.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on July 10, 2012 at 2:54am

The Everflow deal was done a while ago when prices were lower.  Additionally, Halcon wants desperately to get into the play in a major way and the NCL deal did that for them.  It's much easier to sign one massive deal than it is to fill in the gaps with dozens of landmen over the course of a year.  Halcon has so much cash that they'd be crazy not to use some of it.

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