Northern Oil and Gas Inc. continued its buildout in the core of the Williston Basin, the company said July 31, through the acquisition of 400 acres primarily operated by ConocoPhillips Co., Continental Resources Inc. and WPX Energy Inc.

In exchange for $3.2 million in cash and approximately 2.95 million shares of its common stock, Northern Oil and Gas will acquire nonoperated interests in producing properties, wells in process and acreage from multiple counterparties. The company also agreed to pay up to 450,000 additional shares tied to the fate of the Dakota Access Pipeline.

Earlier this year, Northern, which touts itself as being the largest Williston Basin nonoperator, agreed to a $1.5 million-cash purchase of nonoperated interests in core Williston Basin properties operated by WPX Energy. The transaction was expected to close July 1.

“We continue to add to our core inventory,” Northern COO Adam Dirlam said in a July 31 statement commenting on the company’s recent acquisitions. “Record levels of wells-in-process should drive strong volumes, and improve upon our return on capital employed metrics in 2021 and beyond.”

In total, Northern will acquire nonoperated interests in 0.7 net producing wells, 1.9 net wells in process and 1 net undrilled locations located in North Dakota’s McKenzie, Mountrail and Dunn counties. Production from the acquisitions is expected to come online in mid-2021, averaging approximately 820 boe/d.

The transactions are expected to close within 60 days. Northern plans to pay back its acquisition costs and development capital expenses related to the acquired properties within three years, and still retaining additional future upside inventory, according to the company release.

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