Flywheel Bakken, LLC, and certain wholly-owned subsidiaries ("Flywheel" or the "Company"), an independent oil and natural gas company headquartered in Oklahoma City, Oklahoma and backed by the Kayne Private Energy Income Funds platform, announced that it has closed the previously announced sale of their Williston basin assets to Northern Oil & Gas, Inc. (the "buyer" or "NOG") for a purchase price of $165 million in cash, a $130 million 6% 3-year senior unsecured note due 2022, and approximately 5.6 million shares of Northern common stock (as adjusted for customary purchase price adjustments).

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Image: Conventional oil production. Photo: courtesy of Vlado/FreeDigitalPhotos.net.

The divested assets include non-operated working interests in approximately 18,000 net acres containing 87.8 net producing wells, and 4.1 net wells in process.

“The divestiture of our non-operated Williston basin asset will allow us to focus our resources on our core operated asset in the Fayetteville shale and continue to create value for our shareholders.  We have enjoyed working with the Northern team on this transaction, and we wish them continued success with these great assets,” commented Justin Cope, Chief Executive Officer of Flywheel.

Vinson & Elkins acted as legal advisor, and RBC Richardson Barr, LLC served as exclusive financial advisor to Flywheel Bakken.

Source: Company Press Release