Northern Oil and Gas Inc. is the front-runner to buy a stake in Comstock Resources’ Bakken assets in North Dakota, three sources familiar with the matter told Reuters.
Northern has bid about $170 million for a nonoperated working interest in the assets, one of the sources said. A marketing document seen by Reuters last month showed the value of the holding at about $200 million based on the prices of the commodity.
The sources declined to be identified as the talks are confidential.
A Comstock spokesperson disputed that the company had received a bid for about $170 million and said Comstock will not provide any additional comments as the process is confidential. Northern declined to comment.
The U.S. shale sector has seen a string of deals as companies seek to take advantage of a near 50% rise in crude prices, while looking to shore up cash under investor pressure, instead of spending on boosting output.
The properties on offer include 436 wellbores. The 427 actively producing wells in the portfolio most recently had a six-month average net production of 6,400 boe/d, the marketing document said.
The talks could still fall apart, and Comstock’s majority owner, Jerry Jones, who also owns the Dallas Cowboys football team, could turn to another bidder for the assets or pull the deal altogether if it cannot reach an agreement.
Comstock’s decision to offload its Bakken assets comes as deal activity is rising in the Haynesville Shale in Louisiana, where it produces most of its energy. Southwestern Energy recently bought Indigo Natural Resources, and Chesapeake Energy acquired Vine Energy.
Northern earlier this year had acquired some nonoperated interests in Texas’ Permian Basin for about $102 million and in Pennsylvania’s gas-heavy Marcellus basin for $126 million.
Recommended Reading
E&P Highlights: Feb. 6, 2023
2023-02-06 - Here’s a roundup of the latest E&P headlines including a new well coming online and new contract awards in the upstream oil and gas industry.
US Oil, Gas Rig Count Falls by Most in a Week Since June 2020: Baker Hughes
2023-02-03 - This week, the U.S. oil rig count dropped 10 to 599, while the gas rig count slipped two to 158, according to oilfield services firm Baker Hughes.
Intelligent Completions: Sensing Through Cement
2023-02-03 - Miniature quartz gauge measures reservoir conditions through cement in real time.
Western Midstream Details Carbon-Management Initiative with Occidental
2023-02-02 - Analysts note that midstream operators of all sizes may have opportunities in CCUS.
Diamondback Closes $1.55 Billion Lario Acquisition, Boosting Midland Basin Inventory
2023-02-01 - With the Lario Permian deal closed, Diamondback wraps up a pair of fourth-quarter 2022 deals in which it purchased private Midland Basin operators for a total of about $3.3 billion.