Lucero Energy Corp. closed on June 15 the divestiture of non-operated North Dakota Bakken/Three Forks play assets for cash consideration of US$104.6 million (CAD$140.2 million). (Source: Shutterstock.com)
Lucero Energy Corp. closed on June 15 the divestiture of non-operated North Dakota Bakken/Three Forks play assets for cash consideration of US$104.6 million (CAD$140.2 million).
Lucero, based in Calgary, Canada and formerly known as PetroShale Inc., did not disclose the buyer. The company described the transaction as being with “an arm’s length purchaser,” according to a press release.
The divested assets have 153 drilling locations. Production is expected to average 2,300 boe/d in 2023 (80% light oil and NGL). Evaluated by Lucero’s independent reserves evaluator Netherland, Sewell and Associates Inc., the assets include total proved reserves of 15 MMboe and total proved and probable reserves of 20.2 MMboe at Dec. 31, 2022.
At closing, Lucero had no debt and more than CAD$40MM of working capital. The company’s senior secured credit facility was revised to US$160MM.
RBC Capital Markets acted as financial adviser to Lucero.
Lucero also announced its normal course issuer bid with TSX Venture Exchange’s acceptance of the company’s notice of intention to do so. Beginning on June 19, the company plans to buy back, from time to time, up to a maximum of 33.1 million, or 5% of its outstanding shares.
Recommended Reading
Wildcatting is Back: The New Lower 48 Oil Plays
2024-12-15 - Operators wanting to grow oil inventory organically are finding promising potential as modern drilling and completion costs have dropped while adding inventory via M&A is increasingly costly.
Shale Outlook: E&Ps Making More U-Turn Laterals, Problem-Free
2025-01-09 - Of the more than 70 horseshoe wells drilled to date, half came in the first nine months of 2024 as operators found 2-mile, single-section laterals more economic than a pair of 1-mile straight holes.
Matador’s U-lateral Delaware Tests Outproduce 2-mile Straight Holes
2024-10-30 - Matador Resources' results from eight Loving County, Texas, tests include two 2-mile U-turn laterals, five 2-mile straight laterals and one 1-mile straight lateral, according to state data.
Coterra Takes Harkey Sand ‘Row’ Show on the Road
2024-11-20 - With success to date in Harkey sandstone overlying the Wolfcamp, the company aims to make mega-DSUs in New Mexico with the 49,000-net-acre bolt-on of adjacent sections.
Comstock: Monster Western Haynesville Wildcats Cost $30MM-plus
2024-10-31 - Comstock Resources is flowing back a 13th well currently in the play where the oldest has made 2.2 Bcf per 1,000 lateral feet to date in its first 29 months online.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.