Williams (WMB) announced the purchase of 85,800 net acres of leasehold in the Williston Basin that is prospective for the Bakken Shale. The acreage is located in North Dakota on the Fort Berthold Indian Reservation. The company agreed to pay $925 million for the mineral leases.
Williams estimates that its net reserve potential on the leasehold is 185 million barrels of oil equivalent including the Bakken and Three Forks formations. The transaction includes daily production of 3,300 barrels of oil per day from 24 wells.
Williams has established the following capital program on the acreage for 2010 and 2011:
2010 - $60 million and
2011 - $200 million to $300 million
Williams said that three rigs are currently operating on the properties, and the company expects to increase its rig count to six by 2012. The company estimates that production will reach 20,000 barrels per day by the end of 2012.