Whiting USA Trust I has filed yesterday to sell up to $195 million in units in an initial public offering. This is an Austin-based trust structured in October 2007, and is essentially being sold off by Whiting Petroleum Corporation (NYSE:WLL); and Raymond James is the lead underwriter.
The underlying properties include interests in approximately 3,000 producing wells located in 173 fields in 14 states. As of September 30, 2007, the total proved reserves attributable to the underlying properties, as estimated in the reserve report, were 13.18 MMBOE with a pre-tax PV10% value of $243.5 million. All of these reserves were classified as proved developed producing reserves. For the month of September 2007, the average daily net production from these properties was approximately 4,508 BOE/d or 4,057 BOE/d attributable to the net profits interest and were approximately 55% oil and natural gas liquids and 45% natural gas.
If you wish to join our open email distribution list we often provide more detailed IPO and spin-off coverage. This trust from Whiting and other pending MLP and Trust spin-offs in the oil and gas sector are under review for our subscriber-based "Special Situation Investing Newsletter" where we cover buyouts, spin-offs, back-door plays into IPO’s, reorganizations, and more.
Jon C. Ogg
November 21, 2007
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