Northern Oil & Gas (NOG) closed on  an upsized acquisition of working interests in Midland-Petro D.C. Partners LLC (MPDC)'s Mascot Project in the Midland Basin on Jan. 5, a press release announced on Jan. 9.

Originally valued at $330 million in cash, the deal closed with an additional 3.25% working interest added to the 36.7% agreed upon when the transaction was announced on Oct. 19. NOG paid an additional $29 million for the additional interests, which now total 39.958%.

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In total, the deal closed for $320 million in cash, along with $43 million in debt at signing in October. Minnetonka, Minn.-based NOG financed the acquisition with cash on hand, operating free cash flow and assistance from its revolving credit facility.

“With this transaction, we showcase NOG’s expanding capabilities,” NOG CEO Nick O’Grady commented in the Oct. 19 release. “Beyond just a consolidator of nonoperated interests, NOG is proving itself to be an adept and preferred partner for the development of high-quality assets.”

According to NOG, the company expects the impact for additional working interests “to be pro rata from previous public disclosures, including production and related capital expenditures,” the release stated.

Operated by MPDC affiliate Permian Deep Rock Oil Co., NOG expects production from the Mascot Project to average 4,400 boe/d (80% oil) in the first quarter of 2023, totaling 6,450 boe/d for the full year of 2023.

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