Fidelity Exploration & Production Co., an indirect, wholly owned subsidiary of MDU Resources Group Inc., has agreed to purchase working interests and leasehold positions in oil and natural gas production assets in Wyoming’s southern Powder River basin from undisclosed private sellers. The deal is expected to close on or before Apr. 1.
The Converse County, Wyo., properties consist primarily of undeveloped mineral leasehold positions of 41,000 gross acres and 23,700 net acres, MDU said.
The purchase includes working interests in several producing wells and an ongoing two-rig development drilling program targeting the Frontier play.
Current net production totals more than 1,100 boe/d, 80% of which is oil, with additional production expected to be on line before closing. In addition to the Frontier, the acreage is prospective in multiple other zones that may significantly enhance its value, the company said.