Northern Oil and Gas (NOG) has made public its acquisition of Northern Delaware Basin properties.
NOG has entered into a definitive agreement to acquire certain non-operated interests in the Delaware Basin from a private seller for a purchase price of $130 million in cash, subject to typical closing adjustments.
The acquired assets are located in Lea and Eddy Counties, New Mexico, and Loving and Winkler Counties, Texas, and include approximately 2,100 net acres, 5.3 net producing wells, 2.1 net wells-in-process and approximately 17.2 net undeveloped locations.
The primary operator of the assets is Mewbourne Oil, one of the most cost efficient and active operators in the Northern Delaware Basin. Other operators include Coterra Energy and Permian Resources.
The effective date for the transaction is November 1, 2022, and NOG expects to close the transaction in December 2022. The obligations of the parties to complete the transactions contemplated by the purchase agreement are subject to the satisfaction or waiver of customary closing conditions.
Nick O’Grady, NOG’s chief executive officer, commented: “NOG continues to press its advantage as a well-capitalized, reliable and consistent purchaser of high-quality non-operated properties.
“More importantly, NOG’s technical team continues to underwrite for returns with precision and focus on the best assets available in the marketplace today.”
Adam Dirlam, NOG’s president, commented: “This transaction lies squarely in NOG’s fairway on a number of levels. The Assets contain high-quality, low breakeven development that is leveraged to some of NOG’s top operating partners, as our investors have come to expect.”
For more information visit www.northernoil.com