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NOG Acquires Working Interest in the Mascot Project, Midland Basin

Northern Oil and Gas Inc. (NOG) made a $330 million purchase in the Permian Basin, according to the release on October 19.

NOG revealed an agreement to purchase a 36.7% working interest in the Mascot Project from Midland-Petro D.C. Partners LLC (MDPC). The acquisition will be funded with cash on hand, operating free cash flow, and borrowings.

The Mascot Project is operated by Permian Deep Rock Oil Co., an affiliate of MPDC, which is a David H. Arrington-owned business based in Midland, Texas. NOG anticipates that the production from the acquired properties to average almost 4,400 boe/d in the first quarter of 2023 and 6,450 boe/d for the full-year 2023 (2-stream, about 80% oil).

NOG’s goal is to be the go-to resource for operators that are eager to offload non-operated working interests in leasehold. Based in Minnetonka, Minn., and concentrating in the Williston Basin, the company has also extended into the Marcellus Shale and Permian Basin through a series of acquisitions.

It is important to notice, that NOG has incredibly developed its position in the Permian Basin in 2022, as the company’s dealmaking this year was resurrected in January with the closing of a $406.5 million acquisition of Veritas Energy’s non-op position in the Permian, which marked the company’s greatest purchase to date. Consequently, NOG has increased nearly $400 million worth of additional acquisitions in the Permian Basin.

Transactions have included a bolt-on acquisition of core northern Delaware Basin properties claimed in late September for an initial purchase price of $157.5 million and the closing of a $110 million deal for Midland Basin properties from Laredo Petroleum Inc. on October 6, and an additional northern Delaware Basin bolt-on acquisition disclosed by NOG on October 11.

The newly acquired assets are situated in Midland County, Texas, and include four all-depth contiguous drilling spacing units developed for long laterals, 12.1 net producing wells, 5.5 net wells-in-process, and about 17.3 net undeveloped locations. The properties have incurred minimal legacy vertical drilling relative to typical Midland Basin properties.

NOG is also acquiring a pro rata interest in the midstream assets and associated infrastructure, which show roughly $36 million of the allocated value of the transaction.

The effective date for the transaction is Aug. 1, and NOG anticipates closing the transaction in January. Citigroup Global Markets served as NOG’s financial adviser. Kirkland & Ellis LLP serves as the company’s legal adviser. Petrie Partners served as MPDC’s financial adviser. Hunton Andrews Kurth LLP serves as MPDC’s legal adviser.

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Mascot Project Acquisition: NOG says Midland Basin Deal Is Completed

On January 5 Northern Oil & Gas (NOG) concluded a deal to acquire working interests in Midland-Petro D.C. Partners LLC (MPDC)'s Mascot Project in the Midland Basin, according to a January 9 press release. Firstly estimated at $330 million in cash, the deal was signed with an additional 3.25% working interest added to the 36.7% agreed upon when the transaction was announced on October 19. NOG paid $29 million more for the additional interests, which now totalled 39.958%. Finally, the deal closed for $320 million in cash and $43 million in debt at signing in October with the finance of Minnetonka, Minn.-based NOG with cash on hand, operating free cash flow, and assistance from its revolving credit facility.

Crestwood & Oasis Midstream merge to create a top Williston #basin player. $1.8 billion deal is expected to close during the Q1 of 2022. The transaction will result in a 21.7% ownership stake for Oasis in Crestwood common units. The remaining ownership of Oasis in Crestwood will also be of benefit to the company since it will create a diversified midstream operator with a strong balance sheet and a bullish outlook after this accretive merger.

Permian Resources bolsters dominance in the Delaware Basin with strategic land acquisitions, expanding its portfolio by over 5,000 net leasehold acres and 3,000 royalty acres. In a stunning display of growth and strategic maneuvering, Permian Resources Corp., based in Midland, Texas, has made waves in the first quarter by securing a series of deals worth over $200 million in the highly sought-after Delaware Basin. This move solidifies their position as a player in the region.

The Williston Basin, which spans parts of North Dakota, Montana, Saskatchewan, and Manitoba, is a major oil-producing region in North America. In order to transport crude oil and natural gas from the wells to refineries and other destinations, a vast pipeline infrastructure has been built in the area. The pipeline infrastructure in the Williston Basin consists of a network of pipelines that connect production sites to processing facilities, storage tanks, and major pipeline hubs

Matador Resources Co. is making a big move in the oil and gas industry by acquiring Advance Energy Partners Holdings LLC, a major player in the northern Delaware Basin. The acquisition, which comes with a hefty price tag of at least $1.6 billion in cash, includes valuable assets in Lea County, N.M., and Ward County, Texas, as well as key midstream infrastructure.

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