US-based oil and gas exploration company Whiting Petroleum has signed an agreement to sell its Fort Berthold Indian Reservation area assets located in North Dakota to RimRock Oil & Gas Williston for $500m.

Under the agreement, Whiting will offload the largely non-operated assets in Dunn and McLean Counties.

The net proceeds from the transaction will be used to repay $500m of the company’s current bank debt of $550m.

Whiting Petroleum chairman, president and CEO James Volker said: "The price received for these properties, which are largely non-operated, highlights the quality of Whiting’s Bakken / Three Forks assets.

“The Fort Berthold properties represent only approximately 7% of Whiting’s second quarter total production.

“The sale provides Whiting additional liquidity to develop its industry-leading properties across the Williston Basin, where the company estimates it has 4,850 future gross drilling locations.”

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"The sale provides Whiting additional liquidity to develop its industry-leading properties across the Williston Basin, where the company estimates it has 4,850 future gross drilling locations."

The proposed disposition covers 29,637 net acres, 29 non-operated and 17 operated drilling spacing units, with a total net daily production from the properties averaging at 7,785 barrels of oil equivalent a day (boed) in the second quarter of this year.

Lease operating expense for the properties averaged at about $12.60 per boe for the 12 months ending 30 June 2017.

Whiting is focused on developing, acquiring and producing crude oil, natural gas and natural gas liquids in the Rocky Mountain region of the US.

The company’s projects are located in the Bakken and Three Forks plays in North Dakota, and the Niobrara play in north-east Colorado.

The transaction is expected to be closed on 1 September this year.