US-based Devon Energy has agreed to acquire Rimrock Oil and Gas ’ leasehold interest and related assets in the Williston basin in North Dakota for $865m.

Rimrock is a portfolio company of funds managed by US-based private equity firm Warburg Pincus and is engaged in the acquisition and development of oil and gas assets in North America.

The independent oil and gas company was founded in 2016 and operates nearly 200 wells, including 64 drilled wells and more than 130 acquired operating wells.

It holds more than 38,000 net acres of total land holdings in the Williston basin.

Devon Energy president and CEO Rick Muncrief said: “This bolt-on acquisition is highly complementary to our existing position in the Williston basin and is immediately accretive to our financially-driven strategy.

“RimRock’s directly adjacent acreage offers strong operational synergies, adds to our high-quality inventory in the core of the play, and positions us to further increase the return of cash to shareholders.”

Subject to customary terms and conditions, the transaction is planned for completion in the third quarter of 2022.

Upon completion of the deal, Devon’s board intends to increase fixed quarterly dividends by 13%.

Devon in a statement said: “The transaction also adds more than 100 highly economic undrilled inventory locations, positioning the company’s Williston basin assets to maintain high-margin production and strong cash flow for several years.”

In the first quarter of 2022, RimRock reported a production rate of approximately 15,000 barrels of oil equivalent (boe) per day (78% oil). Production is anticipated to increase to 20,000boe per day on an average over the next year.

Wells Fargo served as the financial advisor while Kirkland & Ellis acted as the legal advisor for RimRock pertaining to the transaction.