Northern Oil and Gas expands holdings in Williston

Williston Basin Overview – Williston Basin Minerals

 

Minneapolis-based Northern Oil and Gas announced it just made a $154 million cash bolt-on acquisition of proved producing properties in North Dakota’s Williston Basin where Oklahoma energy firms have had operations.

 

The acquisition involves non-operated interests across over 400 producing wellbores located primarily in Williams, McKenzie, Mountrail and Dunn Counties in the basin that takes in Bismarck and Williston, North Dakota.

The acquired assets include 65.9 net producing wells. The assets are operated by multiple operators in the Williston Basin, and Northern holds existing ownership positions in 84% of the wellbores acquired.

Northern expects to fund the acquisition with cash on hand, operating free cash flow and borrowings under Northern’s revolving credit facility.

Northern expects a significant increase to its borrowing base from both the acquired and existing assets and will begin the process to expand its elected commitment during its regularly scheduled fall borrowing base redetermination, which it expects to complete in November 2021.

October production on the assets is expected to be greater than 4,500 Boe per day (2-stream, ~65% oil) and Northern expects average production of more than 4,100 Boe per day in 2022 (2-stream, ~65% oil). Northern expects negligible capital expenditures on the assets.

The effective date for the transaction is October 1, 2021 and Northern expects to close the transaction within 40 days.

Source: Business Wire

%d bloggers like this: