Whiting Petroleum Corp. (NYSE: WLL) reported Wednesday that it has entered in an agreement with a private company to acquire oil and gas assets in the Williston Basin of North Dakota.
Under the $271 million deal, Whiting will acquire 8,752 net acres with net daily production of approximately 4,200 barrels of oil equivalent per day (boe/d), the company noted in a written statement. The firm pointed out the deal includes five gross/2.3 net drilling and uncompleted wells and 61 gross/39.5 net undrilled locations (100% operated) in Mountrail County, N.D.
Whiting stated the new Williston Basin properties adjoin and complement the company’s existing Sanish field operations.
Also on Wednesday, Whiting revealed that it will divest its oil and gas assets in the Denver-Julesburg Basin in Colorado for total pre-closing cash consideration of $187 million. The firm stated that it will sell its “Redtail” assets, located in Weld County, to a private entity. It pointed out the assets span 67,278 net acres, produce approximately 7,100 boe/d (51% oil), and include associated midstream assets.
“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,” remarked Whiting President and CEO Lynn A. Peterson. “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.”
Whiting expects to close both transactions during the third quarter of this year.
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