Northern Oil and Gas Inc. (NOG) closed its previously announced deal with a private seller of non-operated interests in the Northern Delaware Basin for $131.6 million in cash, the company announced in a press release Dec. 19.
The acquisition was announced with a $13 million deposit in October and is the third Permian Basin acquisition since August, adding to NOG’s $400 million of Permian Basin acquisitions in 2022.
NOG Tacks Another Northern Delaware Basin Bolt-on for $130 Million
Spanning roughly 2,100 net acres, the assets are primarily operated by privately held Mewbourne Oil Co., with production expected to total approximately 2,500 boe/d in 2023. Coterra Energy Inc. and Permian Resource Corp. are also operators of the assets.
With an effective date of Nov. 1, 2022, the acquisition is anticipated to add an approximated $55 million of unhedged cash flow in 2023 as of Oct. 10.
The closing cash settlement is a net of preliminary and customary purchase price adjustments and is subject to post-closing settlements between NOG and the seller.
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