The transaction, which is valued at $74.6m, is expected to increase company’s leasehold to about 85,000 net acres in Williston basin.
As part of the deal, the company will acquire about 20,800 net acres, including 19,500 net acres highly contiguous to its Low Rider operating area in McKenzie county and around 350boe/d of estimated current net production.
In addition, the company will acquire 19 operated Drilling Spacing Units (DSUs), of which 17 DSUs are in Low Rider area, while two DSUs are in Easy Rider.
Emerald Oil CEO McAndrew Rudisill said the two acquisitions will follow company’s strategy of identifying and acquiring contiguous leasehold in firm’s immediate operating areas.
"This additional acreage expands Emerald’s presence in our Low Rider and Lewis & Clark focus areas of McKenzie County, ND where we have seen strong production growth as a result of our successful operated well program," Rudisill added.
