The Williston Basin assets comprise more than 100

QEP Resources’ wholly owned subsidiary QEP Energy Company has signed an agreement for the sale of its Williston Basin assets to Vantage Energy Acquisition’s 100% subsidiary Vantage Acquisition Operating Company, in a deal worth up to $1.725bn.

Under the terms of the definitive agreement, QEP will sell all of its assets in North Dakota and Montana in the US.

They include the company’s South Antelope and Fort Berthold leasehold in the Williston Basin and comprise more than 100,000 net acres. They are currently producing at the rate of 46,000 barrels of oil equivalent (boe) on a daily basis.

QEP chairman, president and CEO Chuck Stanley said: “The Williston Basin assets have been a significant contributor to QEP for many years and were critical in our pivot towards a more oil-focused portfolio.

“This transaction marks an important milestone in simplifying our asset portfolio as we continue on our path to becoming a Permian pure-play operator.”

“This transaction marks an important milestone in simplifying our asset portfolio as we continue on our path to becoming a Permian pure-play operator.

“We intend to use the proceeds from asset sales to fund the ongoing development of our core Permian assets, reduce debt, and return cash to shareholders through a share repurchase programme.”

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The purchase price comprises $1.65bn in cash, prior to post-effective date adjustments, and up to 5.8 million shares of Vantage common stock upon achievement of certain stock price targets.

Once the transaction closes, Vantage Energy Acquisition’s name will be changed to Vantage Energy.

Furthermore, a significant portion of QEP’s High Plains business unit team, including operations, engineering, geoscience, land, administrative and finance groups, will be retained by Vantage.

Subject to certain conditions and approvals from Vantage shareholder and regulatory approvals, the deal is expected to close late in the first quarter or early in the second quarter of next year.