Northern Oil and Gas (NOG) closed two previously announced acquisitions with private sellers in the Utica Shale and northern Delaware Basin assets for $162.6 million, the company said Feb. 5.

In November, NOG said it would enter the Utica Shale with the purchase of interests including 0.8 net producing wells and 1.7 net wells in process from a private party. The Minneapolis company added non-operated interests in Ohio’s Jefferson, Harrison, Belmont and Monroe counties. The primary target zones are the Point Pleasant Formation and the Utica Shale. Nearly all of the acquired Ohio assets are operated by Ascent Resources.

Ascent Resources Ohio Utica Map
(Source: Ascent Resources)

NOG also extended its footprint in the Delaware Basin in a separate transaction that bolts on non-operated interests across about 3,000 net acres in the northern part of the play. The interests are primarily in Lea and Eddy counties, New Mexico. The company owns existing interests in approximately 90% of the leasehold.

The two deals were initially priced at $174 million. NOG paid $28.4 million in closing costs incurred in fourth-quarter 2023 and the remaining $134.2 million in first-quarter 2024.

NOG Northern Delaware Map
(Source: Northern Oil and Gas)

The first quarter closings were funded in part by a $17.1 million deposit paid at signing in November. The closing settlements are net of preliminary and customary purchase price adjustments and remain subject to post-closing settlements between the parties.

More information regarding these acquisitions can be found in NOG's Nov. 21, 2023, press release announcing the transactions, which is available here.

Citi served as financial adviser to NOG for the Delaware Basin transaction. TPH&Co, the energy business of Perella Weinberg Partners, served as financial adviser to the Delaware Basin seller. Kirkland & Ellis LLP is serving as NOG’s legal adviser for the Delaware Basin transaction. Steptoe & Johnson is serving as NOG’s legal adviser for the Utica transaction.

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