• Sign up for the Daily Digest E-mail
  • Facebook
  • X
  • LinkedIn

BOE Report

Sign up
  • Home
  • BOE Intel
  • Headlines
    • Latest Headlines
    • Featured Companies
    • Columns
    • Discussions
  • Well Activity
    • Well Licences
    • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts/Data
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
    • Data
      • Canada Oil Market Data
      • Canada NG Market Data
      • USA Market Data
      • Data Downloads
  • Jobs

Breakdown of BOE/D Metrics by Play

July 4, 20167:00 AM BOE Report Staff0 Comments

Since the third quarter of 2015, average metrics per play in Western Canada are substantially lower versus historical prices. This has been mainly caused by a ~50% drop in the price of oil. Deal values have also dropped by about 50% since then, when looking at deal value per barrel of oil equivalent per day ($/BOE/D). These are transactions that historically have gone for $100,000-$120,000 and are now being sold for roughly half that amount.

For the most part, transactions where oil production is greater than 50% of a deal’s commodity mix, there seems to be fairly similar metrics on a $/BOE/D basis when comparing the prominent formations. Currently, most of the high-quality plays are fetching between $50,000-$60,000 per BOE/D with a couple of exceptions.

The Williston Basin Bakken (Canada only) tops the list with the average deal value at $61,174/BOE/D, however other plays get fairly similar metrics. The reason the Bakken tops the list is likely due to the higher  number of oil producing wells in the region as compared to other plays. Oil plays in the W5/W6 region tend to come with more associated gas, which is still less valuable than oil on a BOE basis.

The Slave Point in Northern Alberta and heavy oil around the Lloydminster area get considerable discounts with deal values averaging $35,000 and $25,000 per BOE/D respectively. This is likely due to higher operating expenses, particularly in the Lloydminster region where water and sand cuts can be particularity high. The Slave Point play seems to be less sought after as it doesn’t offer as attractive netbacks as its counterparts.

What is probably most interesting within this analysis is how oil sands operations are fetching metrics comparable to the highest quality light oil plays in the basin. Average deals in the oil sands have been valued at $53,543/BOE/D. This is likely due to a combination of continual optimization efforts (thereby reducing costs) and the long-term prospects of the commodity.

The above data was gathered from the BOE Report’s M&A Database

Bakken Cardium Montney Shaunavon Viking Williston Basin

Follow BOE Report
  • Facebook
  • X
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • Saudi Arabia cuts Jan Arab Light crude price to Asia – sources
  • Venezuela’s Maduro to push oil exploration in disputed territory
  • Saturn Oil & Gas Inc. announces its first development of Cardium and Bakken light oil and the highest initial production rates on new Frobisher wells to date
  • Suncor Energy announces 2024 corporate guidance
  • Canada regulator denies Trans Mountain expansion variance request

Return to Home
Alberta GasMonthly Avg.
CAD/GJ
Market Data by TradingView

    Report Error







    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    • Editorial Policy
    Resources
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • Rigger Talk
    Data Partner
    BOE Network
    © 2023 Stack Technologies Ltd.