Williams Corp. Confident in Bakken Purchase
Williams Companies Inc. has purchased 85,800 net acres of North Dakota’s most profitable oil plays for $925 million, and the company is more confident than ever for its future endeavors. The massive purchase of Bakken shale, which will conclude before the end of the year and begin work by October, is just one of many shales Williams Companies has handled in the past.
Williams’ chairman, president and CEO Steve Malcolm said in a press statement, “Development of the Bakken will be very similar to the low-risk, repeatable nature of the Barnett and Marcellus shales, as well as the tight sands in the Piceance Basin. Technological advancements in just the past few years have allowed the play to shift from exploration to resource development.”
In just two years the company’s exploration and production interests are expected to rise by more than 15 percent, becoming roughly 25 percent of the business, up from just seven. That number also stems from the assets of more than 3000 barrels per day of net oil production from existing wells, and an approximate 185 barrels of oil equivalent in total net reserves from the site.
"This acquisition establishes a significant acreage position in an area which further diversifies, and when combined with our recently acquired Marcellus position, basically transforms our business – both geographically and in terms of our product mix," said Ralph Hill, president of Williams' exploration and production business. "It enables us to deploy available capital and existing technical expertise to a very attractive new opportunity."
While still a relatively new discovery, the Bakken Shale in North Dakota is one of the several shale deposits containing oil in the area. Tulsa based oil and gas explorers Williams Corporation have been benefiting from these findings since the early 1900s.