(Source: Sompong Tokrajang / Shutterstock.com)
Northern Oil & Gas (NOG) closed on an upsized acquisition of working interests in Midland-Petro D.C. Partners LLC (MPDC)'s Mascot Project in the Midland Basin on Jan. 5, a press release announced on Jan. 9.
Originally valued at $330 million in cash, the deal closed with an additional 3.25% working interest added to the 36.7% agreed upon when the transaction was announced on Oct. 19. NOG paid an additional $29 million for the additional interests, which now total 39.958%.
RELATED
NOG Continues A&D Tear with $330 Million Midland Basin Acquisition
In total, the deal closed for $320 million in cash, along with $43 million in debt at signing in October. Minnetonka, Minn.-based NOG financed the acquisition with cash on hand, operating free cash flow and assistance from its revolving credit facility.
“With this transaction, we showcase NOG’s expanding capabilities,” NOG CEO Nick O’Grady commented in the Oct. 19 release. “Beyond just a consolidator of nonoperated interests, NOG is proving itself to be an adept and preferred partner for the development of high-quality assets.”
According to NOG, the company expects the impact for additional working interests “to be pro rata from previous public disclosures, including production and related capital expenditures,” the release stated.
Operated by MPDC affiliate Permian Deep Rock Oil Co., NOG expects production from the Mascot Project to average 4,400 boe/d (80% oil) in the first quarter of 2023, totaling 6,450 boe/d for the full year of 2023.
Recommended Reading
Congress Kills Biden Era Methane Fee on Oil, Gas Producers
2025-02-28 - The methane fee was mandated by the 2022 Inflation Reduction Act, which directed the EPA to set a charge on methane emissions for facilities that emit more than 25,000 tons per year of CO2e.
Industry Players Get Laser Focused on Emissions Reduction
2025-01-16 - Faced with progressively stringent requirements, companies are seeking methane monitoring technologies that make compliance easier.
Big Spenders: EPA Touts Billions in Clean Energy Spending
2025-01-15 - Nearly $69 billion in funding from the Inflation Reduction Act and Bipartisan Infrastructure Law has been dispersed by the Environmental Protection Agency in its clean energy push.
Permian Operators Cut Methane Emissions by 26% in 2023, S&P Global Says
2024-12-23 - S&P Global credits improved equipment and technology for helping with methane emissions reductions in the Permian Basin.
Pioneer to Adapt Emvolon’s Flare Gas-to-Methanol Tech
2025-01-13 - The Department of Energy awarded Pioneer Energy $6 million to demonstrate the technology at an oil and gas facility in the Eagle Ford Shale for 12 months.
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.