[Context: On August 15, Warburg Pincus-backed RimRock Oil & Gas announced an agreement to acquire Bakken acreage from Whiting Petroleum for $500m. Further details and related links are below.]
Whiting Petroleum Corporation Announces $500 Million Sale of Fort Berthold Area Assets in North Dakota
DENVER–(BUSINESS WIRE)–Aug. 15, 2017– Whiting Petroleum Corporation (the “Company”) (NYSE:WLL) has an agreement to sell its Fort Berthold Indian Reservation area assets located in Dunn and McLean Counties, North Dakota to RimRock Oil & Gas Williston, LLC. The cash purchase price is $500 million, subject to customary adjustments. Whiting will use the net proceeds from the sale to repay $500 million of its current $550 million bank debt. The effective and closing date of the sale is September 1, 2017.
James J. Volker, Whiting’s Chairman, President and CEO, commented, “The price received for these properties, which are largely non-operated, highlights the quality of Whiting’s Bakken/Three Forks assets. The Fort Berthold properties represent only approximately 7% of Whiting’s second quarter total production. The sale provides Whiting additional liquidity to develop its industry-leading properties across the Williston Basin, where the Company estimates it has 4,850 future gross drilling locations.”
The properties span 29,637 net acres, 29 non-operated drilling spacing units and 17 operated. Net daily production from the properties averaged 7,785 BOE/d in the second quarter of 2017. Lease operating expense (LOE) for the properties averaged approximately $12.60 per BOE for the 12 months ending June 30, 2017. Whiting’s other operated Bakken production averaged $7.50 per BOE.
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 region of the United States. The Company’s largest projects are in the Bakken and Three Forks plays in North Dakota and Niobrara play in northeast Colorado. The Company trades publicly under the symbol WLL on the New York Stock Exchange.