Marathon Oil announced they will pay $888MM to acquire Payrock Energy's position in the STACK, covering roughly 61,000 net acres and current net production of 9,000 barrels of oil equivalent per day (Boe/d).
Marathon Oil's Investor Relations Webcast Highlights:
The deal implies $11,800 per net undeveloped acre after backing out PDP production value.
Initial production rates on a few of their 1-mile lateral wells exceeded 1,300 Boe/d.
330 MMBOE 2P Resource with 490 gross operated locations ($2.20 / Boe implied value)
6 well Meramec density per section assumed in their valuation
940 MBoe EUR per well type curve
790 Boe/d average IP30
Marathon's shares surged since the announcement was made.