MDU Resources Group Inc., through its Bitter Creek Pipelines LLC subsidiary, plans to pay $66 million for a 50% interest in Whiting Oil & Gas Corp.’s Bakken midstream assets near Belfield, ND.
The facilities include a new gas processing plant and gas gathering pipeline system connected to the plant. A residue line that ties into the Williston Basin Interstate Pipeline Co. system also is included along with a oil gathering system, an oil storage terminal, and an oil pipeline that connects the terminal to the Bridger Pipeline. Whiting will continue to operate the facilities.
The Belfield gas processing plant has an inlet processing capacity of 35 MMcfd.
The oil terminal is currently under construction with completion expected in the third quarter.
Terms of the acquisition call for Bitter Creek to pay 60% of certain future capital expenditures.
Oil and gas production from Whiting’s Pronghorn acreage in Stark and Billings counties, combined with adjacent Stark County acreage owned by Fidelity Exploration & Production Co., an MDU Resources subsidiary, will supply these facilities.
Fidelity and Whiting have a combined seven rigs operating in the acreage feeding the facilities.
