Whiting Petroleum Corporation (NYSE:WLL) announced on August 27, 2013 that it has signed a purchase and sale agreement with a private party to acquire certain producing oil and gas wells and development acreage in the Williston Basin in Williams and McKenzie counties of North Dakota and Roosevelt and Richland counties of Montana. The purchase price is $260 million, subject to customary adjustments, and the acquisition has an effective date of August 1, 2013.
Whiting expects the acquisition to close by September 30, 2013, subject to customary conditions to closing. Whiting plans to finance the acquisition with borrowings under its existing bank credit facility.
The properties primarily target the Middle Bakken and Three Forks zones, and include 17,282 net (39,310 gross) acres located in and around Whiting’s acreage in the Missouri Breaks and Hidden Bench prospects in its Western Williston Basin area. The properties include 13 operated 1,280-acre Bakken/Three Forks drilling spacing units with an average working interest of 58 per cent and net revenue interest of 48 per cent. 92 per cent of the acreage is held by production.
Net oil and gas production from the properties is estimated to average 2,420 barrels of oil equivalent (BOE) per day in August 2013. Whiting estimates proved reserves at 17.1 million BOE with 85 per cent of reserves being oil. Whiting also estimates 24 per cent of the reserves are proved developed producing and 76 per cent are proved undeveloped.
James J. Volker, Whiting’s Chairman and CEO, commented, “This acreage expands our presence in our Western Williston Basin area where we have seen recent strong production growth primarily as a result of positive drilling results at our Hidden Bench, Tarpon and Missouri Breaks prospects.”
About Whiting Petroleum Corporation
Whiting Petroleum Corporation, a Delaware corporation, is an independent oil and gas company that explores for, develops, acquires and produces crude oil, natural gas and natural gas liquids primarily in the Rocky Mountain,Permian Basin, Mid-Continent, Michigan and Gulf Coast regions of the United States. The Company’s largest projects are in the Bakken and Three Forks plays in North Dakota and its Enhanced Oil Recovery field in Texas. The Company trades publicly under the symbol WLL on the New York Stock Exchange. For further information, please visit http://www.whiting.com.by