Northern Oil & Gas Inc., Minneapolis, has signed a definitive agreement to acquire producing assets in the Williston basin of North Dakota in a cash and stock deal.
The 1,900 acres in the Pronghorn area are 100% held by production and operated by Whiting Petroleum Corp. and Continental Resources Inc. Current estimated production is 165 boe/d. Total consideration is $5 million in cash (subject to closing adjustments) and 500,000 shares of Northern common stock.
Earlier this month the company acquired oil production and acreage in the Williston basin from Salt Creek Oil & Gas LLC, Denver, for $40 million and 6 million shares (OGJ Online, June 8, 2018).
Separately, Northern entered into an exchange agreement with an institutional holder of its 8% senior unsecured notes due 2020. The agreement represents a debt reduction of $10 million par value of notes. In exchange, Northern will issue 3,338,020 shares of common stock to the investor.
The Williston basin asset acquisition is expected to close on or before Aug. 1.