Drilling in unconventional plays requires a lot of capital, which means many of the private companies will likely sell before raising additional capital. Several companies could be potential takeover targets.
“The company estimates that more than 550,000 acres in the Niobrara play belong to small private companies that could potentially be available as acquisition targets. IHS has identified a number of private E&P companies with assets in the Niobrara play, which extends from Wyoming and Colorado into Nebraska and Kansas.
“Some of the largest private acreage holders include Cirque Resources, which holds 240,000 total net acres in the Denver-Julesberg (DJ) and Hanna basins, followed by Laramie Energy II, which holds 110,000 total net acres in the DJ and North Park basins. Bonanza Creek Energy Company follows with 63,000 total net acres in the DJ and North Park basins, which, according to the report, ‘is significant enough to attract a large company and reports 92 MMboe of net resources potential.’ ”