Chord Energy’s Acquisition of Williston Basin Acreage from XTO Energy has Potential 100 MMBOE Upside.
In a press release last week, Chord Energy announced that they have reached a deal to acquire 62,000 mostly undrilled acres in the Williston Basin from XTO Energy (fig 1). The deal, worth $375MM cash, is estimated to add 6 MBoepd production stream from existing assets along with 123 prospective 10,000 ft lateral locations to Chord's inventory, and will allow them to increase 6 of their existing 2-mile DSU's to 3-mile units.
Chord Energy’s President and CEO, Danny Brown, cited “consolidation … longer laterals, higher capital, and operating efficiencies, strong financial returns, and sustainable free cash flow generation” as the key factors in this acquisition. According to the TGS Well Data Analytics, Chord Energy’s well lateral length in the Williston Basin has stabilized around 9500’, while lateral efficiency has steadily increased to over 80 EUR/ft (fig 2). This makes them one of the most efficient operators in the Williston Basin (fig 3). If Chord Energy can successfully drill and complete all 123 prospective locations, they should expect to realize upwards of 92 MMBOE of production from this acquisition.
For more information on Well Data Analytics or to schedule a demo, contact us at WDPSales@tgs.com.
Fig 1 – Chord Energy (Whiting O&G, Oasis Petroleum) and XTO Energy - Operator Map
Fig 2 - Chord Energy Historic Performance
Fig 3 – Williston Basin Top Operators Lateral Benchmarking
