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6 Pages

Synergy Resources acquires DJ Basin assets from Noble for US$505 million


Synergy Resources acquires DJ Basin assets from Noble for US$505 million

Report summary

Synergy Resources is buying 33,100 net acres in Weld County, Colorado from Noble Energy for US$505 million. Average net daily production on the acquired assets is approximately 2,400 barrels of oil equivalent per day. The acreage is largely undeveloped horizontally, but over 80% of the acquired lands are held by production from vertical wells. We value the position using our type curve assumptions for extended lateral development in the Greater Wattenberg sub-play. Our valuation is dependent upon Synergy's ability to optimize well spacing across the acquired acreage. While the base case valuation is quite close to the deal consideration, we believe that Synergy may have been willing to pay a premium to acquire acreage contiguous to their own in the heart of the Wattenberg Field. These opportunities are rare in the Wattenberg, as the acreage is largely held by few operators.

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  • Synergy Resources acquires DJ Basin assets from Noble for US$505 million PDF - 291.96 KB 6 Pages, 7 Tables, 0 Figures

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
    • Noble Energy
    • Synergy Resources
  • Oil & gas pricing and assumptions

In this report there are 7 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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