Northern Oil and Gas (NOG) completed the cash purchase of 2,275 net acres in the Midland Basin on April 1 $61.7 million cash, the company reported in a first-quarter earnings release on April 29.

The deal, accounted in February, was with an existing private operating partner. Minneapolis-based NOG initially said it would pay $40 million for the Upton County, Texas. NOG, a non-op, is engaged in a multi-year joint venture to develop the acquired property.

NOG also completed seven ground game deals during the three-month period to add more than 1,000 acres and 1.1 net wells for $4.8 million. That compares to the previous quarter when NOG closed on deals valued at $27 million, which added 0.7 net producing wells, 3.2 net in-process wells and some 2,274 net acres. The company did not disclose where the acreage was acquired. NOG holds about 300,000 leasehold acres across the Permian, Williston, Uinta and Appalachian basins.

In the Permian, NOG holds about 43,000 net acres. It spent 57% of its capex during the first three months of the year. About 46% of its wells are located in the Permian.

NOG recorded total production for the period of 134,959 boe/d (58% oil)—a 13% increase from the same time last year. Uinta volume grew 15% quarter-over-quarter during its first reporting period since SM Energy took on operations, NOG said in the release. NOG partnered with SM to acquire Uinta Basin E&P XCL Resources for a combined $2.6 billion.

“The inherent flexibility of the non-operated model and our broad basin and production mix will allow for dynamic capital allocation to adjust for any changes in the commodity pricing backdrop,” said CEO Nick O’Grady. “Our robust hedge book keeps our cash flows insulated, providing optionality to capitalize on value creation opportunities in any environment.”

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