Hess Corporation (HES) has increased the company’s position in the Bakken Shale through the acquisition of American Oil and Gas (AEZ). Hess Corporation will issue 0.1373 shares of its common stock for each share of American Oil and Gas.
American Oil and Gas has 85,000 net acres in the Williston Basin in North Dakota that is prospective for the Bakken Shale. The company has acreage in the Goliath project in Williams County, North Dakota.
American Oil and Gas latest completion in the Bakken Shale was the Ron Viall 1-25H well, which produced at a 24 hour production rate of 2,844 barrels oil equivalent (BOE), and averaged 987 BOE per day during the first thirty days.
American Oil and Gas summarizes the potential of its acreage in the Williston Basin in the company’s marketing materials as follows:
- 50+ possible 1,280 net acre Drilling Spacing Units (DSU)
- Potential for 3 to 4 wells in each DSU per formation
- 150 to 200 net unrisked Bakken locations.
- 150 to 200 net unrisked Three Forks locations