Emerald Oil, Inc. 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.
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