Chord Energy strikes Williston basin deal with ExxonMobil subsidiary

A subsidiary of Chord Energy Corp., Houston, has agreed to acquire assets in the Williston basin from Exxon Mobil Corp. subsidiary, XTO Energy Inc. and affiliates, for total cash consideration of $375 million.

The deal includes production over 6,000 boe/d (62% oil) and 62,000 net acres (77% undeveloped), the majority of which is adjacent to Chord’s core Indian Hills area, that include 123 estimated net 10,000 ft locations (77 operated), “40-50% of which are anticipated to be developed as 3-mile laterals slightly lower than [Chord’s] 55-60% 3-mile lateral inventory, but coinciding with the 2023 activity plan for 3-mile wells to be about half of the year's TILs [turned-in-line],” TD Cowen analysts detailed in a report May 22. The deal also extends 6 current 2-mile locations into 3-milers.

The deal also includes royalty interests in certain drilling and spacing units.

Closing is expected end-June 2023.