Whiting Petroleum has agreed to acquire certain oil and gas assets in the Williston Basin, North Dakota, US, from an undisclosed company in a deal worth $271m.
The agreement will see the acquisition of acreage of 8,752 net acres with net daily production of nearly 4,200 barrels of oil equivalent per day (BOE/d) by the Delaware-based firm.
The assets also include five gross / 2.3 net drilled and uncompleted wells; and 61 gross / 39.5 net undrilled locations in Mountrail County.
Whiting Petroleum said that these assets adjoin and complement its existing operations in the Sanish field.
As a result, the firm anticipates minimal additional general and administrative costs to operate the newly acquired acreage.
Additionally, Whiting Petroleum has agreed to off-load its oil and gas assets in the Denver-Julesburg Basin (DJ Basin) of Colorado in the US to an undisclosed private entity for $187m.
Spread over 67,278 net acres, these assets, including their associated midstream assets, are located in Weld County. Their daily production is around 7,100boe/d, of which, 51% is oil.
Whiting Petroleum president and CEO Lynn Peterson said: “These two transactions result in a significantly deeper drilling inventory in our key Sanish operating area, while divesting of properties in Colorado that were not going to compete internally for capital.
“These transactions demonstrate our strategy to focus our attention on value-enhancing opportunities that compete for capital in a $50 oil environment. Including these transactions, the Company now estimates that in a mid-$50s oil environment it has over six years of high-quality drilling inventory, assuming a two rig drilling program.”
The two deals are planned to be completed in the third quarter of this year 2021.