Analysis of consummated U.S. based oil and gas acquisitions in terms of price paid for a given reserve magnitude yields fundamental conclusions. The historical price paid can be directly correlated with the then current wellhead price and also with the outlook for the future. Separating transactions into principally oil versus principally gas, yields separate correlations and is the main cause of difficulties when averaging $/BOE data.

Acquirers can be subdivided into groups that operate in defined "acquisition territories," such territories having economic, legal and physical boundaries. By defining acquisition territory, the likely competition mix and price usually paid can be modelled based on an analysis of past transactions. This knowledge is invaluable in both strategy formulation and in bid price estimation.

This analysis documents historical acquisition trends (based on over 600 transactions) and performs basic correlations with price, industry sector, and business cycle position. This data provides correlations for development of predictive models and hence the ability to tailor acquisition/divestiture strategy to the ever-changing business environment.

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