Comstock Resources has entered a definitive agreement to sell its assets in North Dakota’s Bakken basin to Northern Oil and Gas for $154m in cash.

The transaction includes non-operated interests in more than 400 producing wells located primarily in Williams, McKenzie, Mountrail and Dunn Counties.

The assets, under multiple operators, are expected to produce around 4,500 net barrels of oil equivalent (boe) per day this month. In 2022, the average production is expected to be more than 4,100boe per day.

The transaction is expected to close within 40 days, subject to customary conditions.

Comstock plans to use the proceeds to support Haynesville shale development programme. A portion of the funds will also be used to acquire additional leasehold and support additional drilling activity next year.

Other the other hand, Northern plans to fund the acquisition with available cash and borrowings under its revolving credit facility.

Northern CEO Nick O’Grady said: “We remain consistent with our strategy. The focus continues on being the natural consolidator of working interests and executing with financial discipline, concentrating on cost of entry, return on capital employed and cash flow net to our shareholders.

“Despite purchasing the assets with cash, we still expect a 1x leverage ratio by year-end 2022. With the planned dividend increase, we will have doubled our shareholder return programme in less than five months since inception.”

Northern chief operating officer Adam Dirlam said: “This is our third major transaction this year in as many basins.

“Our team’s ability to actively pivot has provided for consistent optionality to pursue value-enhancing opportunities in the most prolific basins across the US.”