Occidental reportedly selling Bakken acreage at sharp discount

Fuel Fix ^ | October 16, 2015 | Jordan Blum

[thackney]

17¢ on the dollar

[bigbob]

So did they overpay to begin with?

[thackney]

I’m not sure what they paid 5 years ago.

My 17¢ price is in reference to the original asking price a year ago.

[thackney]

My 17¢ price is in reference to the original asking price a year ago a few months ago.

[Da Bilge Troll]

If the buyer can hold on to the land long-term, it is bound to worth a lot more eventually.

[thackney]

Cash flow is king.

[dynoman]

Wow. The small company my wife works for has went through a transition but is still viable, still hauling some fresh water for fracks. Not sure who is still fracking.

[dynoman]

Oxy must be thinking it’s a long term loss. Unless their cash flow is jamming up. Probably wasn’t an easy decision.

[thackney]

Unless their cash flow is jamming up.

That would be my guess, but only guessing.

It would make a big difference where the acreage is located.

https://www.dmr.nd.gov/oilgas/BreakevenHistorical.pdf Breakeven ND$/barrel by county

Billings $28
Bottineau $85
Renville $85
McLean $25