Acquired 5% WI in 3,000 net undeveloped acres,14% WI in 59 existing Bakken and Three Forks wells in ND Bakken shale, gaining 1,200 BOE/d, 300,000 BOE PDP.
Northern Oil and Gas Inc., Wayzata, Minn., (Amex: NOG) has acquired North Dakota Bakken assets from Windsor Bakken LLC for $7.3 million in cash. Northern Oil acquired a 5% interest in 60,000 undeveloped acres (3,000 acres net), which it plans to develop with privately held Slawson Exploration Co. Inc. The acreage includes several Parshall Field wells that Northern Oil believes offer significant infill drilling opportunities. The transaction also involved a 14% interest in 59 existing Bakken and Three Forks wells in North Dakota, including approximately 1,200 barrels of oil production per day and 300,000 barrels of proven producing reserves. Under the exploration and production agreement with Slawson, Slawson as operator is expected to drill up to 45 gross Bakken wells on the newly acquired acreage through 2010. Drilling will likely be focused on approximately 23,000 core Bakken acres in Mountrail County, encompassing a significant portion of Northern's existing core Bakken acreage. Michael Reger, Northern Oil chief executive, says, "This new acreage is highly complementary to our existing acreage position, especially in Mountrail County, and we expect a significant number of the wells to be drilled on the undeveloped portion to include acreage Northern currently controls. We believe the addition of such acreage, together with the increased borrowing base under our CIT facility, will enable Northern Oil to continue to aggressively execute its development plans within a highly productive area of the Bakken. This acquisition of production and reserves, at a very compelling value, represents the types of opportunities we have been targeting in the current market environment." Northern Oil primarily focuses on the Williston Basin Bakken and Three Forks/Sanish trend.