Northern Oil and Gas Inc. has agreed to acquire non-operated interests across the Bakken shale in the Williston basin from Comstock Resources for $154 million in cash.
The properties include over 400 producing wells (65.9 net) primarily in Williams, McKenzie, Mountrail, and Dunn Counties, ND.
October production on the assets is expected to be over 4,500 boe/d (2-stream, ~65% oil) and Northern expects average production of more than 4,100 boe/d in 2022 (2-stream, ~65% oil). Northern expects negligible capital expenditures on the assets.
The acquired assets include 65.9 net producing wells. The assets are operated by multiple operators in the Williston Basin, and Northern holds existing ownership positions in 84% of the wellbores acquired.
The deal is expected to close in this year’s fourth quarter.
Comstock expects to recognize a pre-tax loss of $130-140 million on the divestiture.
Comstock plans to re-invest the proceeds from the property sale into its Haynesville shale development program, including the acceleration of completing 13 (9.4 net) drilled and uncompleted wells which were originally budgeted to be completed in 2022. The company may also use a portion of the proceeds to acquire additional leasehold and to fund additional drilling activity in 2022.