Northern Oil and Gas has entered a joint development program with an Appalachian operator. (Source: Shutterstock, NOG)
Northern Oil and Gas (NOG) has entered a joint development program with an Appalachian operator, which the company did not name in a Dec. 12 press release.
The program, which covers drilling activities in calendar year 2025, requires a capital commitment from NOG that isn’t expected to exceed $160 million for a 15% working interest, the company said. The working interests have an average net revenue interest of 84%.
The program provides for participation in Appalachian Basin wells to be spud during 2025 and offers NOG a “high degree of visibility and incremental certainty” on its 2025 ground game program while adding to its gas inventory, the company said in the release.
“NOG’s ability to offer creative and scaled capital solutions that align with the objectives of our operating partners continues to provide the company with accretive opportunities,” said CEO Nick O’Grady. “This joint venture deepens our relationship with a substantial operating partner. We believe that our unique market position and strategy enhances our ability to deliver a superior total return option to our stakeholders.”
NOG has engaged in several M&A deals as a third party, minority interest acquirer. That includes a transaction this year with SM Energy to acquire Uinta Basin operator XCL Resources for a combined $2.6 billion. NOG has also twice partnered with Vital Energy, most recently on a $1.1 billion acquisition of Point Energy Partners in the Delaware Basin.
Recommended Reading
BP Profit Falls On Weak Oil Prices, May Slow Share Buybacks
2024-10-30 - Despite a drop in profit due to weak oil prices, BP reported strong results from its U.S. shale segment and new momentum in the Gulf of Mexico.
EON Enters Funding Arrangement for Permian Well Completions
2024-12-02 - EON Resources, formerly HNR Acquisition, is securing funds to develop 45 wells on its 13,700 leasehold acres in Eddy County, New Mexico.
Utica Oil E&P Infinity Natural Resources’ IPO Gains 7 More Bankers
2024-11-27 - Infinity Natural Resources’ IPO is expected to provide a first-look at the public market’s valuation of the Utica oil play.
Are Shale Producers Getting Credit for Reining in Spending Frenzy?
2024-12-10 - An unusual reduction in producer hedging found in a Haynes and Boone survey suggests banks are newly open to negotiating credit terms, a signal of market rewards for E&P thrift.
Exxon, Chevron Beat 3Q Estimates, Output Boosts Results
2024-11-01 - Oil giants Chevron and Exxon Mobil reported mixed results for the third quarter, with both companies surpassing Wall Street expectations despite facing different challenges.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.