Whiting Petroleum is to buy oil and gas assets in the Williston Basin of North Dakota and divest of all its oil and gas assets in the Denver-Julesburg Basin of Colorado, known as the Redtail assets.
The Williston Basin assets are being acquired from a private company for $271m. The assets include 8,752 net acres with net daily production of approximately 4,200 boe/d.
These properties adjoin and complement Whiting’s existing operations in the Sanish field and the company says they will require minimal additional general and administrative costs. These locations immediately compete for capital within the company’s existing portfolio and will allow Whiting to increase capital efficiency by extending laterals on certain wells when combined with its existing acreage.
In a further deal, Whiting is to sell its Redtail assets, including associated midstream assets, located in Colorado’s Weld County to a private entity for $187m. The assets span 67,278 net acres with daily production of approximately 7,100 boe/d.
Lynn A. Peterson, president and CEO of Whiting, said: “These transactions demonstrate our strategy to focus our attention on value-enhancing opportunities that compete for capital in a $50 oil environment. Including these transactions, the company now estimates that in a mid-$50s oil environment it has over six years of high-quality drilling inventory, assuming a two-rig drilling program.”
Both transactions are expected to close in the third quarter of 2021.
For more information visit: www.whiting.com