Whiting Petroleum Acquires Williston Basin Assets in North Dakota
NYSE-listed Whiting Petroleum Corp. has entered into a definitive agreement with an undisclosed seller to acquire 8,752 net acres in the Williston basin located in Mountrail county in North Dakota, for a total cash consideration of US$271 million, subject to customary closing adjustments.
Concurrently, the company has entered into a separate definitive agreement with an undisclosed buyer to divest 67,278 net acres of Redtail assets, including associated midstream assets in Weld county, Colorado, for total cash consideration of US$187 million, subject to customary closing adjustments.
The assets acquired include 8,752 net acres in the Williston basin located in Mountrail county, North Dakota, 61 gross (39.5 net) undrilled locations, and five gross (2.3 net) drilled and uncompleted (DUC) wells. There is significant upside from Whiting Petroleum’s existing operations in the Sanish field, which will require minimal additional general and administrative costs. The current average daily production attributable to the acquired acreage is approximately 4,200 barrels of oil equivalent per day (boe/d), of which 80% is oil.
“These two transactions result in a significantly deeper drilling inventory in our key Sanish operating area, while divesting of properties in Colorado that were not going to compete internally for capital. These transactions demonstrate our strategy to focus our attention on value-enhancing opportunities that compete for capital in a $50 oil environment. Including these transactions, the company now estimates that in a mid-$50s oil environment it has over 6 years of high-quality drilling inventory, assuming a two rig drilling program,” commented Lynn A. Peterson, President & CEO of Whiting Petroleum.
Headquartered in Denver, Whiting Petroleum is engaged in the acquisition, exploration, development and production of crude oil, NGLs and natural gas primarily in the Rocky Mountains region of the United States, where it holds a large acreage position in the Bakken/Three Forks play in the Williston basin of North Dakota and Montana.
The transaction is subject to customary closing conditions, and is expected to be completed in Q3-2021.