Viking oil has been a much sought after asset over the past 3 to 6 months. Companies such as Raging River Exploration, Teine Energy and NAL Resources have significantly increased their exposure in the play. The Viking play has several advantages for producers: low capital costs, high netbacks because it’s a light oil play, and low operating costs.
Even with all its benefits, the Viking has not been immune to the tremendous drop in the price of oil. It’s still a profitable play, but where producers used to tout $50-$60/bbl netbacks, the reality is now closer to $15-$25/bbl. Here is a chart of Viking oil transactions since 2013.
The Viking has been a prime example of a high quality play which used to fetch $100,000+/BOE/D for producing assets. Current trasnactions fall in the $50,000 – $60,000 range.
This report was generated using the BOE Report M&A database.
Click here to see all the information on the Viking on the BOE Report Viking Play Page, including: news, most recent transactions, drilling activity trends, recent licences and spuds, most active operators, and properties for sale.
