Whiting Petroleum Corp., Denver, has signed a purchase and sale agreement with an undisclosed private party to acquire certain producing oil and gas wells and development acreage in the Williston basin in Montana for $260 million.
The properties primarily target the Middle Bakken and Three Forks zones and include 17,282 net (39,310 gross) acres in and around Whiting’s acreage in the Missouri Breaks and Hidden Bench prospects in its western Williston basin area. The properties include 13 operated 1,280-acre Bakken/Three Forks drilling spacing units with an average working interest of 58% and net revenue interest of 48%. Ninety-two percent of the acreage is held by production.
Whiting said it has seen “strong production growth” due to drilling results at its Hidden Bench, Tarpon, and Missouri Break prospects.
Net oil and gas production from the properties is estimated to average 2,420 boe/d in August. Whiting estimates proved reserves at 17.1 million boe with 85% of reserves being oil. Whiting also estimates 24% of the reserves are proved developed producing and 76% are proved undeveloped.
The deal, subject to customary adjustments, would have an effective date of Aug. 1, and Whiting expects the deal to close by Sept. 30.