Diamondback Energy announced a deal to purchase leasehold interests in the Midland Basin for $538 million (click here). The acquisition includes 13,136 net acres, 2,173 boe/d and 94 net producing wells. Valuation metrics for this deal are $40,956/net acre and $247,584/flowing barrel.
Applying these metrics to Lynden Energy Corp.'s Wolfberry assets are as follows:
$40,956/net acre x 5,883 net acres = $241 million US ($1.80/share CAD)
$247,584/flowing barrel x 1,250 boe/d = $310 million US ($2.32/share CAD)
LVL's metrics do not include any valuation for their 51,000 acres at Mitchell Ranch.