Whiting Petroleum has signed two agreements to acquire non-operated oil and gas assets, in the Williston basin of North Dakota, in the US, from two undisclosed private companies.
The assets were acquired for a total cash consideration of $273m, before closing adjustments.
The assets being acquired include 14,563 net acres, four gross/0.2 net drilled and uncompleted well interests, and 277 gross/32 net undrilled locations.
Located in Mountrail County, North Dakota, these assets increase the average operated working interest, from 61% to 74%, across the Sanish field of Whiting Petroleum.
Whiting president and CEO Lynn A Peterson said: “These transactions continue the strategy we put forth beginning in late 2020. By increasing our working interest, we are immediately recognising substantial cash flow that is accretive for shareholders.
“We know and understand the Sanish field extremely well, and are very comfortable with the rate of return we are achieving.”
In the near term, Whiting plans to develop the undeveloped locations.
Whiting stated that the assets, at the closing of the deals, are anticipated to contribute approximately 4,500 barrels of oil equivalent per day.
Of the two deals, the smaller acquisition was completed in Q4 2021 while the larger deal is scheduled for completion in Q1 2022.
Whiting has also unveiled its capital plan that includes operating two drilling rigs, and one completion crew, in the Williston basin for most of this year.
In this year, the firm plans to reinvest approximately 40% of the expected EBITDA for the period that is in line with the previous year.
The company declared a share dividend price of $0.25 per share for Q1 2022 for shareholders of record, payable on 15 March.
In September 2021, Whiting reported a decrease of 2.3% in total oil and gas production rates.