Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
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
CERAWeek: Trinidad Energy Minister on LNG Restructuring, Venezuelan Gas Supply
2024-03-28 - Stuart Young, Trinidad and Tobago’s Minister of Energy, discussed with Hart Energy at CERAWeek by S&P Global, the restructuring of Atlantic LNG, the geopolitical noise around inking deals with U.S.-sanctioned Venezuela and plans to source gas from Venezuela, Suriname and Trinidad.
Exclusive: Chevron Balancing Low Carbon Intensity, Global Oil, Gas Needs
2024-03-28 - Colin Parfitt, president of midstream at Chevron, discusses how the company continues to grow its traditional oil and gas business while focusing on growing its new energies production, in this Hart Energy Exclusive interview.
Baltimore Port Closure Could Dent US Coal Export Volumes, EIA Says
2024-03-28 - Baltimore handled exports of 28 million short tons last year, making up 28% of total U.S. coal exports.
Liberty Energy CEO: NatGas is Here to Stay as Energy Transition Lags
2024-03-27 - The energy transition hasn’t really begun given record levels of global demand for oil, natural gas and coal, Liberty Energy Chairman and CEO Chris Wright said during the DUG GAS+ Conference and Expo.
Green Light: NatGas Industry Just Fine, TG Natural Resources CEO Says
2024-03-27 - Craig Jarchow, president and CEO of TG Natural Resources, updated the integration status of its $2.7 billion acquisition of Rockcliff Energy and addressed macro concerns about the natural gas business at Hart Energy’s DUG GAS+ Conference and Expo in Louisiana.