Northern Oil & Gas Acquires Additional Williston Basin Properties
NYSE-listed Northern Oil & Gas Inc. has entered into definitive agreements with multiple undisclosed sellers to acquire producing properties, wells in process, and acreage located in the Williston Basin in McKenzie, Mountrail, and Dunn counties, for a total consideration of approximately US$5.5 million in cash and stock, plus certain additional contingent equity consideration.
The transaction payment comprises an initial cash amount of US$3.2 million and an additional consideration of approximately US$2.33 million payable by way of issuance of 2.95 million shares of common stock at a share price of US$0.79 per share (closing price on July 30, 2020). A further consideration of approximately US$0.35 million payable by way of issuance of 450,000 shares of common stock at the same price will be paid assuming full operation of the Dakota access pipeline over a 12-month period.
The acquired properties include certain non-operated interests for approximately 400 net acres, 0.7 net producing wells, 1.9 net wells in process, and 1.0 net undrilled locations. The assets are primarily operated by ConocoPhillips, Continental Resources Inc., and WPX Energy Inc., with most of the wells in process expected to come online in H1-2021. The average daily production from the acquisitions is expected to be approximately 820 barrels of oil per day during 2021.
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed by the end of September.