Northern Oil and Gas to Acquire Assets in Williston Basin

Northern Oil and Gas (NYSEAmerican:NOG) announced that it has entered into a definitive agreement to acquire producing assets in the Williston Basin of North Dakota. In addition to entering into the definitive agreement, the company also announced it has also entered into another negotiated exchange agreement.

Northern Oil and Gas, is an exploration and production company with a core area of focus in the Williston Basin in North Dakota and Three Forks in Montana.

As quoted from the press release:

HIGHLIGHTS

• Acquisition includes current estimated production of 165 barrels of oil equivalent per day and over 1,900 acres in the Pronghorn area of the Williston Basin
• Exchange agreement will result in a debt reduction of US$10 million par value of notes, in exchange for common stock
• Combined with the other exchange transactions announced over the last two weeks, Northern has now entered into agreements to retire US$53.8 million of its remaining notes

“This acquisition is another indicator of our continued success in pursuing accretive acquisitions and our competitive advantage in the Williston Basin,” commented Northern’s chief executive officer, Mike Reger. “Our capital allocation process is driving strong cash flow growth. We continue to see numerous acquisition opportunities, while at the same time we continue improving our balance sheet and reducing our cash expenses.”

The acquired acreage is 100 percent held by production and focused in the Pronghorn area, operated by Whiting Petroleum (NYSE:WLL) and Continental Resources (NYSE:CLR). Total consideration is US$5 million in cash (subject to closing adjustments) and 500,000 shares of Northern common stock, with the acquisition expected to close on or about August 1, 2018.

Click here to read the full press release