Northern enters Williston basin bolt-on deal with WPX

Northern Oil and Gas Inc. has entered into a definitive agreement to acquire 320 acres of core Williston basin properties operated by WPX Energy for $1.5 million in cash. Since signing, the company has received 9 gross well proposals to fully develop the unit consisting of 2.1 net wells, according to a June 5 release.

Northern expects $12.5 million of development capital through 2020 and early 2021, with expected initial sales in the first quarter of 2021. The acquired assets are expected to produce 1,200 boe/d and produce an estimated $11.3 million of unhedged cash flow from operations in 2021 at the current commodity pricing strip as of June 5.

Subject to customary conditions, closing is expected on July 1.