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%.
RELATED
NOG Continues A&D Tear with $330 Million Midland Basin Acquisition
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.
Recommended Reading
APA Corp., TotalEnergies Announce $10.5B FID on ‘Goliath’ Sized Deal Offshore Suriname
2024-10-01 - APA and TotalEnergies’ offshore Suriname GranMorgu development is estimated to hold recoverable reserves of more than 750 million barrels.
Seadrill to Adopt Oil States’ Offshore MPD Technology
2024-09-17 - As part of their collaboration, Seadrill will be adopting Oil States International’s managed pressure drilling integrated riser joints in its offshore drilling operations.
International OFS Firm HMH Plans to IPO, Activate in M&A
2024-08-13 - The firm is a 50/50 joint venture of Baker Hughes and Akastor ASA formed in 2021 to include brands such as Hydril and Vetco Gray as well as Wirth and Maritime Hydraulics.
Now, the Uinta: Drillers are Taking Utah’s Oily Stacked Pay Horizontal, at Last
2024-10-04 - Recently unconstrained by new rail capacity, operators are now putting laterals into the oily, western side of this long-producing basin that comes with little associated gas and little water, making it compete with the Permian Basin.
IOCs See Opportunity in Offshore Mexico, Despite Potential for Policy Changes
2024-08-14 - Five IOCs with offshore experience and capital—Eni, Harbour, Talos, Wintershall Dea and Woodside—continue to pursue promising opportunities offshore Mexico despite the country’s energy sovereignty push in favor of state-owned entities Pemex and CFE.
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.