Northern Oil and Gas Inc. logo on a smart phone.
Northern Oil and Gas Inc. (NOG) closed its previously announced deal with a private seller of non-operated interests in the Northern Delaware Basin for $131.6 million in cash, the company announced in a press release Dec. 19.
The acquisition was announced with a $13 million deposit in October and is the third Permian Basin acquisition since August, adding to NOG’s $400 million of Permian Basin acquisitions in 2022.
RELATED
NOG Tacks Another Northern Delaware Basin Bolt-on for $130 Million
Spanning roughly 2,100 net acres, the assets are primarily operated by privately held Mewbourne Oil Co., with production expected to total approximately 2,500 boe/d in 2023. Coterra Energy Inc. and Permian Resource Corp. are also operators of the assets.
With an effective date of Nov. 1, 2022, the acquisition is anticipated to add an approximated $55 million of unhedged cash flow in 2023 as of Oct. 10.
The closing cash settlement is a net of preliminary and customary purchase price adjustments and is subject to post-closing settlements between NOG and the seller.
Recommended Reading
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.