RimRock Oil & Gas has completed the acquisition of upstream assets in Williston Basin from Whiting Petroleum for $500m.
The acquired assets spread over the Fort Berthold Indian Reservation of Dunn and McLean Counties in North Dakota.
With around 30,000 net acres, the acquired assets’ net production is around 8,000 barrels of oil equivalent per day.
Lease operating expense (LOE) for the properties averaged around $12.60 per BOE for the year ending 30 June 2017. Whiting’s other operated Bakken production averaged $7.50 per BOE.
Whiting is planning to use the proceeds from the deal to repay $500m of its current $550m bank debt.
RimRock president and CEO James Fraser said: "We are pleased to acquire these assets, which include both meaningful existing production and a substantial amount of highly attractive undeveloped acreage in the core of the Williston Basin.
“This transaction is consistent with our strategy of building a company of sustainable scale in the basin and we will continue to evaluate additional opportunities to grow our platform."
RimRock is a start-up company engaged in the acquisition and development of unconventional oil and gas assets in the Rocky Mountains region of the US.
The firm’s significant projects are situated in the Bakken and Three Forks plays in North Dakota and Niobrara play in northeast Colorado.
RimRock, which is a portfolio company of Warburg Pincus, relocated its headquarters from Calgary of Alberta to Denver of Colorado in July.