Asset A&D

Grayson Mill Energy Acquires Equinor's Bakken Assets

By Isha Makkar
February 10, 2021
a minute read

Grayson Mill Energy LLC has entered into an agreement with Equinor ASA to acquire its portfolio of operated and non-operated Bakken Formation assets in North Dakota and Montana, for a total consideration of approximately US$900 million. The sale marks Equinor’s exit from its Bakken operations, that were acquired as part of its acquisition of Brigham Exploration Co. in 2011.

In January 2020, Equinor had disclosed its intention of disposing of its Bakken assets owing to heavy losses. Equinor had written off US$2.9 billion in Q3-2020, including US$1.4 billion in the United States, after cutting its long-term oil & gas price forecasts.

The assets acquired include 242,000 net acres of operated and non-operated properties, along with associated midstream infrastructure, including gas processing facilities, pipelines, and systems to support produced water disposal, crude and gas gathering. The assets had average daily production of approximately 48,000 barrels of oil equivalent per day (boe/d) during Q4-2020.

“Equinor is optimising its oil and gas portfolio to strengthen profitability and make it more robust for the future. By divesting our Bakken position we are realising proceeds that can be deployed towards more competitive assets in our portfolio, enabling us to deliver increased value creation for our shareholders,” said Anders Opedal, Equinor’s President & CEO.

Backed by investments from funds managed by Encap Investments LP, Grayson Mill Energy is currently engaged in the acquisition and development of assets in unconventional resource plays across the United States.

The transaction is subject to customary closing conditions, including authority approvals, and has an effective date of January 1st, 2021.

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