Northern Oil and Gas has entered a joint development program with an Appalachian operator. (Source: Shutterstock, NOG)
Northern Oil and Gas (NOG) has entered a joint development program with an Appalachian operator, which the company did not name in a Dec. 12 press release.
The program, which covers drilling activities in calendar year 2025, requires a capital commitment from NOG that isn’t expected to exceed $160 million for a 15% working interest, the company said. The working interests have an average net revenue interest of 84%.
The program provides for participation in Appalachian Basin wells to be spud during 2025 and offers NOG a “high degree of visibility and incremental certainty” on its 2025 ground game program while adding to its gas inventory, the company said in the release.
“NOG’s ability to offer creative and scaled capital solutions that align with the objectives of our operating partners continues to provide the company with accretive opportunities,” said CEO Nick O’Grady. “This joint venture deepens our relationship with a substantial operating partner. We believe that our unique market position and strategy enhances our ability to deliver a superior total return option to our stakeholders.”
NOG has engaged in several M&A deals as a third party, minority interest acquirer. That includes a transaction this year with SM Energy to acquire Uinta Basin operator XCL Resources for a combined $2.6 billion. NOG has also twice partnered with Vital Energy, most recently on a $1.1 billion acquisition of Point Energy Partners in the Delaware Basin.
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