Whiting Petroleum Corp. has signed a $260 million agreement to buy oil and gas wells and about 17,282 net (39,310 gross) acres of mineral rights from an undisclosed party in the Williston Basin of North Dakota and Montana, the company said in an Aug. 27 press release. (See map identifying new acreage at http://bit.ly/17lQZ8t)
The assets are in North Dakota’s Williams and McKenzie counties and Montana’s Richland county, in and around Whiting’s acreage in the Missouri Breaks and Hidden Bench prospects.
Whiting said it thinks the properties, which produced an average of 2,420 barrels of oil equivalent a day in August, contain proved reserves of 17.1 million barrels of oil equivalent, about 85 percent of which is oil. It estimates 24 percent of the reserves are “proved developed producing” and 76 percent are “proved undeveloped.”
The acquired assets include 13 operated 1,280-acre Bakken/Three Forks drilling spacing units with an average working interest of 58 percent and net revenue interest of 48 percent. Ninety-two percent of the acreage is held by production.
“This acreage expands our presence in our Western Williston Basin area where we have seen recent strong production growth primarily as a result of positive drilling results at our Hidden Bench, Tarpon and Missouri Breaks prospects,” James J. Volker, Whiting’s chairman and CEO, was quoted as saying in the press release.
Denver-based Whiting, which plans to finance the acquisition with borrowings under its existing bank credit facility, expects the acquisition to close by Sept. 30, and carry an effective date of Aug. 1.
The $260 million price tag is “subject to customary adjustments,” Whiting said.
Whiting is an independent oil and gas company that explores for, develops, acquires and produces crude oil, natural gas and natural gas liquids primarily in the Rocky Mountain, Permian Basin, Mid-Continent, Michigan and Gulf Coast regions of the United States.
The company said its largest projects are in North Dakota’s Bakken and Three Forks plays, which are part of the Bakken petroleum system, and its enhanced oil recovery field in Texas.
—Kay Cashman
