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Vitesse has acquired additional oil and gas interests in the Williston Basin of North Dakota

Published by , Editorial Assistant
Oilfield Technology,

Vitesse has acquired additional oil and gas interests in the Williston Basin of North Dakota that will result in approximately US$50 million of acquisition and related development capital expenditures, primarily in the 3Q/4Q23.

These acquisitions increase the Company’s 2023 capital expenditures guidance range and are expected to provide material increases to production and cash flows in 4Q23 and, more significantly, for the full year of 2024.

These interests were acquired through Vitesse’s near-term development (NTD) acquisition programme and were underwritten above the Company’s internal rate of return hurdle using a discount to current NYMEX strip prices. The Company subsequently capitalised on higher oil prices and hedged 4Q23 and 2024 oil production associated with these acquisitions, which enhanced the expected rates of return.

“As a return of capital company, these opportunistic acquisitions combined with our hedging activity are expected to be accretive to our free cash flow, which is supportive of our dividend,” commented Bob Gerrity, Vitesse’s Chairman and Chief Executive Officer.

With these additional investments and updated timing of well connects, the Company has revised its 2023 guidance and is providing a preliminary outlook for 2024.

Vitesse now expects oil and gas production in the 4Q23 to average 12, 00 to 13 000 boe/d, up from approximately 11 000 boe/d in the 3Q23. This results in full year 2023 production ranging from 11 500 to 11 700 BOE/D. Total 2023 capital expenditures are now expected to be US$110 to US$130 million. The Company’s early estimates for 2024 indicate a production range of 12 500 to 13 500 boe/d and total capital spending, including NTD acquisitions, of US$90 to US$110 million.

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