$EOX Development Hightlights
Emerald's production increased 31% from Q1. Oil and natural gas sales increased 56% year over year, and 29% sequentially for the quarter. Emerald continues to add acreage.
In April, it purchased 5874 net acres at $1100/acre. This is in Emerald's McKenzie County core acreage. In August, it added another 3500 net acres. It paid $3000/acre in this transaction, and was also in McKenzie County. Of its 58000 net acres in the Williston Basin, 25750 is operated. It has increased its operated working interest to 67%, and would like to push this to 75%.
It has maintained its 2013 cap ex budget of $127.6 million. It has an average well cost of $10 million, and it will drill 12 net operated wells this year. Its cap ex breaks down to $120.2 million on operated wells and $7.4 million on non-operated.
In Q2, it added 2.84 net operated wells and 3.12 non-operated wells from July of last year through June of 2013. Realized oil price was $85.09/bbl. This was an increase from $83.43 in Q2 of 2012. Differentials in the Q2 were $6.49/bbl. compared to $9.11/bbl. year over year.
As of June 30th of 2013, it had 2.84 net operated wells compared to 0 year over year. It also had 11.18 non-operated wells compared to 9.06 at the end of June in 2012.