The company entered into two definitive agreements with multiple sellers to acquire the properties located in Williams and McKenzie counties of North Dakota.
QEP Resources chief executive Chuck Stanley said the acquisition will add to the company’s core acreage in the Williston Basin region within a contiguous block known for the Bakken and Three Forks formations.
"To drive operational efficiency, we have historically targeted the best rock in contiguous operated acreage blocks in the basins in which we operate,” said Stanley.
The properties have an aggregate current net production approximately 10,500 barrels of oil equivalent per day and aggregate net proved and probable reserves of approximately 125 million barrels of oil equivalent.
Proved and probable reserves comprise of 81% crude oil, 9% NGL and 10% natural gas.
The properties have an aggregate of 72 gross (29 net) developed locations and 301 gross (146 net) undeveloped locations , which will be developed as separate horizontal wells targeting Bakken and Three Forks formations.
Post sale, 90% of aggregate net acreage to be acquired will be operated by QEP, which is likely to invest $1.59bn to develop the properties currently being operated by US-based Helis Oil & Gas Company.
The transaction will close on or before 27 September 2012 and is expected to increase QEP’s net acreage in the Williston Basin to approximately 118,000 acres.
"Further the Acquisition gives us a greater degree of operational flexibility in allocating rigs and personnel on our various assets in North Dakota."
"We expect the growth potential of these assets to have a significant impact on our overall production, and more specifically on our crude oil production.
