Exploration and production company Chord Energy announced that one of its fully owned subsidiaries has agreed to acquire core acreage in the Williston Basin from Exxon Mobil’s subsidiary XTO Energy and affiliates, in a deal valued at $375m.

Chord Energy’s acquisition includes 62,000 net acres of which nearly 77% is undeveloped. The core acreage is located within and adjacent to the near-term development programme.

The acreage, which is 100% held by production, has 123 estimated net 10,000-foot equivalent locations.

It includes interests in Chord Energy’s operated wells and new largely undeveloped drilling spacing units (DSUs) with an average operated working interest of about 65%.

Besides, the acquisition includes royalty interests in certain DSUs.

The assets in the Williston Basin have a high-margin production of more than 6,000 barrels of oil equivalent per day, of which nearly 62% is oil.

According to Chord Energy, the acquisition will enable the company to convert six pre-acquisition two-mile DSUs into three-mile DSUs.

Chord Energy president and CEO Danny Brown said: “The acquired assets are an excellent strategic and operational fit to Chord’s premier Williston Basin acreage position.

“These low-cost, tier-one assets are highly competitive with our existing portfolio and further extend our inventory runway.  Consolidation in the core of the basin supports longer laterals, higher capital and operating efficiencies, strong financial returns and sustainable free cash flow generation.

“The transaction creates significant accretion for shareholders across all metrics, while maintaining pro forma leverage below our target.”

The transaction, subject to customary closing conditions, is expected to take place at the end of June 2023.

Chord Energy was formed as a scaled unconventional US oil producer last year through a combination transaction between Whiting Petroleum and Oasis Petroleum.