Enverus Blog

Insights across the energy value chain

It was a few years ago when Samson drilled the London Flats well on their 40k net acre Niobrara position in Goshen County.  It was not a successful well, producing about 10 BOPD.  They put the acreage on hold and pursued other areas such as the emerging Bakken.  They did, however, recognize that they were sitting on oil saturated rock in the Niobrara.

Fast forward to the current land grab in SE Wyoming and NE Colorado.  The State Oil and Gas Lease Auction last month brought in $45 million, the acreage near Samson commanded over $2,000/acre.  EOG and CHK have been active in testing near the Samson acreage.  Below is a Samson sourced map of their acreage, the bordering EOG land, and Silo field to the south.

Samson O&G Acreage Commands High Price

Now fast forward to last Friday.  Samson announced it sold off 24,000 net acres to an undisclosed large independent oil and gas company for $61-$79 million dollars, almost $3,000 per acre.  They will maintain a 4.8% royalty from the sold property.

The Samson acreage is bounded to the south by EOG and Silo, Chesapeake is a little farther NE.  Noble concentrated in Weld county, CO.  If it was EOG that paid $3,000/acre, then they obviously would be very convinced at the quality because they got in at a much cheaper price  earlier.  Some large companies that participated in the Oil and Gas Lease Sale and paid prices near this were Marathon, Mariner, and Questar.

Check the Niobrara Unconventional Update for more information on all things Niobrara.

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Justin Birmingham

Justin Birmingham is a Research Analyst at Drillinginfo. He creates proprietary research studies, works with statistical models and manages datasets for the DI Analytics team. Justin earned his Bachelor of Science from Texas State University – San Marcos.