I haven’t been living under a rock I was just too busy to get to this earlier today. An I wanted a little time for more information to surface.

Norway’s Statoil has a 4.7 billion dollar cash offer to purchase Brigham Exploration (bexp) for 36.50 a share which seems like a good price until you realize that it works out to about $12,500 an acre which is not too far off from what a landowner could expect in royalty payments over the lifespan of a good well.

“The Brigham Exploration Company board of directors has unanimously recommended to its shareholders that they accept the offer.” and… It sounds like they plan to keep all of Brigham’s employees so it is probably a good deal for everyone who works at the company.

My personal feeling is that the only ones getting screwed are the stock holders because the stock price would have probably gotten over 36.50 a share this year anyway, but as it stands everyone still made some money so maybe it is OK.

I have a feeling this acquisition may be the first many significant buys in the Williston Basin.

The ripples caused by the news influenced some other in other small company’s around the basin.  It almost looked like people were taking their gains and moving strait into Oasis which I think may also be on someones acquisition list.

Here is what Statoil has up on their site regarding the potential acquisition.

http://www.statoil.com/no/NewsAndMedia/News/2011/Downloads/Presentation%20-%20Fargo.pdf

Local Mirror

Filed under: BakkenEnergyNews

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