Consolidation | Russell T. Rudy Energy LLC
As soon as it became apparent that the crude oil price collapse was not a temporary phenomenon, many industry observers predicted an industry consolidation. One need look no further than yesterday’s on-line edition of “World Oil” for proof that it is underway.
Whiting Petroleum Corp, the largest operator in the Bakken shale in North Dakota, has reportedly hired a bank to facilitate a possible sale. Whiting surpassed Continental Resources last year as the premier player in the Bakken when it acquired Kodiak Oil & Gas. Whiting has a market value of $5.7 billion and is rumored to have contacted Statoil regarding a potential buy out. More at http://www.worldoil.com/news/2015/3/9/whiting-petroleum-said-to-hire-bank-to-pursue-potential-sale ,
Dune Energy Inc. has filed for Chapter 11 protection after a possible sale to Eos Petro Inc. fell through. Dune had focused on rejuvenating long neglected former Texaco properties along the Louisiana coastline. The company has asked for court approval to sell its assets at auction on June 9 in Houston. More at http://www.worldoil.com/news/2015/3/9/dune-energy-declares-bankruptcy-after-merger-fails.
Dune follows Houston based Cal Dive International Inc., a provider of manned diving services to the oil and gas industry, in filing for Chapter 11.
Conversely, Jericho Oil Corporation has finalized its purchase of a 50% working interest in 1,850 acres in Northeast Oklahoma. This is Jericho’s first acquisition in the state. The company will assess the current infrastructure on the property and begin the process of reworking and reactivating existing wellbores. CEO Allen Wilson remarked “Our current situation provides us the ability to act accordingly when these types of opportunities present themselves, and it is our intention to continue to do so as long as oil prices remain unsettled.” More at http://www.worldoil.com/news/2015/3/9/jericho-oil-closes-on-its-initial-oklahoma-acquisition .
