Noble Affiliates, Inc.'s wholly owned subsidiary, Samedan Oil Corporation, has entered into an agreement with Denver based Aspect Energy and certain of its affiliates, through which Noble has acquired all of Aspect's current net production from approximately 110 wells located in a fifteen county/parish area along the Texas and Louisiana Gulf Coast. In addition, Noble has acquired a 50% interest in Aspect Resources, LLC which holds Aspect's portfolio of future drilling prospects in this region. The total cost of the acquisition is $125 million. Eighty-five million dollars is allocated to 59 Bcfe of proved developed producing reserves resulting in a cost of approximately $1.44 per Mcfe. Forty million dollars is allocated to the investment in Resources, whose drilling portfolio includes 166 Bcfe of risked resources net to Noble's interest. The full cost of the Aspect Resources component, including acquisition and future exploration and development costs, is estimated to be $1.20 per Mcfe. As part of the agreement, Noble expects to become the operator of all the properties operated by Aspect.
The total acquisition price for existing net production, which totals approximately 57 million cubic feet per day of gas and 1,900 barrels of oil per day, is $85 million and is composed of $55 million in cash, $15 million in stock and $15 million in net assumed liabilities. The net assumed liabilities include $40 million of gross debt offset by $15 million in working capital and $10 million in net unrealized gas hedge gains.
The acquisition price for Resources, which includes over 350 drilling opportunities ranging in depth from 6,000' to 20,000', is $40 million. Noble will also pay an additional $55 million to help fund Aspect's portion of drilling costs over the next two years. Resources' existing staff of approximately 45 geologists, geophysicists, engineers and land personnel will remain in Denver with additional operational staff being provided by Noble.