Whiting Petroleum Corporation 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 US$500 million, subject to customary adjustments. Whiting will use the net proceeds from the sale to repay US$500 million of its current US$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 4850 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 7785 boe/d in the second quarter of 2017. Lease operating expense (LOE) for the properties averaged approximately US$12.60 per BOE for the 12 months ending June 30, 2017. Whiting’s other operated Bakken production averaged US$7.50 per BOE.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/16082017/whiting-petroleum-corporation-announces-us500-million-sale-of-fort-berthold-area-assets-in-north-dakota/