Midland-Petro DC Partners LLC (MPDC) has agreed to sell a 36.7% working interest in the Mascot project in the Midland basin to Northern Oil and Gas Inc. (NOG) for $330 million in cash, NOG said in a release Oct. 20. NOG also will acquire a pro rata interest in the midstream assets and associated infrastructure, which represent about $36 million of transaction value.
The project is operated by Permian Deep Rock Oil Co., an affiliate of MPDC. The companies have formed a joint operating agreement with a plan to fully develop the units, completing the drilling project in 2024, NOG said. Additional unbooked infill and secondary zones remain for future development, the company said.
NOG said it expects production from the acquired Midland County, Tex., properties to average 4,400 boe/d in first-quarter 2023 and about 6,450 boe/d for full year 2023 (2-stream, 80% oil).
The assets include four all-depths contiguous drilling spacing units developed for long laterals, 12.1 net producing wells, 5.5 net wells-in-process, and about 17.3 net undeveloped locations. The properties have incurred minimal legacy vertical drilling relative to typical Midland basin properties, NOG said.
The deal is expected to close in January 2023.