People: Yesterday, U S Energy Group , USEG, sold an undivided 87.5% interest in its Daniels County Lease Acreage for $3.68 million, conditioned upon the execution of a mutually acceptable Purchase and Sale Agreement. This values the 19,000 net acres at $221/ac. if my math is correct. Of course, the buyer is getting a fair number of acres. The purchaser will commit to drill a vertical well to depths sufficient to core the Bakken and Three Forks on or before December 31, 2015.
Seward: This is interesting but I believe we will more of this type activity in the future. If coring these zones prove successful, they get some very cheap acreage.
Seward,
Your amount per acre may be off by the average royalty leased so it will be somewhat higher and USEG will most likely be carried for a percentage of the well thereby further shading the real bonus amount for the area. The results of the cores will be very interesting and portend the future of the immediate area. There is nothing better than real geologic information to attract or negate operators interests.