sea vs aok

ASX: SEA just sold their South Antelope Field for $172M. Its in the Bakken (ie not a ML lime play). Stats were:
- 3900 Acres
- $44k/acre
- reserves as of June 2011: 1P=3.5MMBoe, 3P=12.2MMBOE (note this is a year old so reserves are likely more now)
- 4.5 net producing wells for 500 BOEPD

Comparartive sales show Bakken media sale prices of:
- $28/bbl of 1P reserve
- $156/BOEPD
- $11,000/acre

Bakken wells are quoted as:
- $9-12 million to drill and complete
- EUR 450-1000 mboe
- approx 70% oil
- 30 day IP 1400-2000ish
- 160 acre spacing

The field could not have been very well devloped with only 4.5 net producing wells (ie 720 acres developed, 3000+ yet to drill) and the production is not huge.

A can't but notice many similarities with Snake River
- similar size *
- same well spacing
- similar IRR and EUR *
- similar production to what one would expect post AOK's current drill program

* Snake river is actually bigger. Also the IRR of the ML play is based on historical data - the newer wells are getting better IRR and EUR as completions improve and the oil rich Eastern limb is exploited.

I'm not suggesting that Snake River would fetch $172Million on the open market. What I am saying is that we have an asset which is just as good as oil fields selling for many multiples of the price elsewhere in the USA

The same could be said for RFE. They have many more acres but their results to date have been less consistent.