Another oil and gas acquisition has been made in the Permian Basin.
Northern Oil and Gas,Inc. announced its purchase of 3,000 net acres located in Lea and Eddy Counties, New Mexico next to where it already has existing interests. The Minneapolis, Minnesota based company did not identify the frim that sold the acreage which has current production of 2,800 Boe a day. NOG said it expects 2024 production to average 2,500 Boe a day but also anticipates significant future growth with average production of 3,500 Boe per day for 2025.
The acquired assets include 13.0 net producing wells, 1.0 net well in process and an estimated 26.3 net undeveloped locations, representing approximately 13.5 years of inventory at sustaining capital levels.
The effective date for the transaction is November 1, 2023. NOG has placed a $17.1 million deposit for the acquisition with the balance of the funding to occur at closing, which is expected in the first quarter of 2024, subject to the satisfaction of typical closing conditions.
NOG also said another acquisition was made in the Appalachian Basin where it acquired non-operated interests in Jefferson, Harrison, Belmont and Monroe Counties, Ohio. The primary target zone is the Point Pleasant/Utica Shale.
NOG said current production is about 23 MMcfe a day with slightly higher production in 2024.
The acquired properties include approximately 0.8 net producing wells and 1.7 net wells-in-process. Substantially all the assets are operated by Ascent Resources,of Oklahoma City, one of the top Utica producers in Ohio.