Zephyr Energy PLC has agreed to acquire further non-operated working interests in currently producing and near-term production wells in the Williston basin of North Dakota from Kaiser Acquisition and Development - Sanish Non-op LLC. Consideration for deal is $36 million, of which $3 million will be paid immediately as a non-refundable deposit.
The assets are operated by Whiting Petroleum Corp., which serves as operator of a number of Zephyr's existing non-operated wells in the basin.
Zephyr will acquire working interests in 163 currently producing wells (PDP wells) within 1,960 net acres with about 871 boe/d net to the assets being produced in September 2021.
In addition, the acquisition includes 18 (5 gross) proved not producing (PNP) and drilled but uncompleted wells (13 gross expected to be placed on production by June 30, 2022), all of which have been drilled and are expected to come online in the coming months. When online, expected in 2022, the PNP and DUC wells are expected to increase net production of the assets above 1,100 boe/d.
Also included are 47 proved but undeveloped (PUD) locations for future drilling.
The assets are spread across 22 separate drilling pads in Mountrail County, North Dakota, and are estimated by Sproule Inc. to hold a net 2.764 MMboe of proven reserves.
The deal is expected to close by Dec. 22.