Northern Oil and Gas, Inc. Announces Closing of VEN Bakken Acquisition, Acquired Assets Outperforming Prior Expectations
July 02 2019 - 7:00AM
Business Wire
Northern Oil and Gas, Inc. (NYSE American: NOG) (“Northern”)
announced today that it has closed on the previously announced
acquisition of properties owned by VEN Bakken, LLC, a wholly owned
subsidiary of Flywheel Bakken, LLC, in the core of the Williston
Basin. The acquired assets are outperforming Northern’s initial
estimates with an increase in both current producing wells and
wells in process.
HIGHLIGHTS
- Production from the acquired assets is now expected to average
approximately 6,650 barrels of oil equivalent (“Boe”) per day in
the third quarter of 2019 and approximately 7,000 Boe per day in
the fourth quarter of 2019, an increase from Northern’s prior
estimate of 6,600 Boe per day (2-stream).
- The acquired assets now consist of 87.8 net producing wells, an
increase of 0.9 net wells, and 4.1 net wells in process, an
increase of 1.4 net wells. In addition, Northern now estimates that
the acquired assets include an additional 45.6 net undrilled
locations of future drilling inventory.
MANAGEMENT COMMENT
“The VEN Bakken acquisition has closed exactly on schedule and
is performing better than our initial forecast,” commented
Northern’s Chief Executive Officer, Brandon Elliott. “These assets
will help drive our debt adjusted cash flow per share higher and
our general and administrative expenses per barrel lower. We have
also helped to protect the additional cash flows from operations
with the hedges we put in place at the time of the
announcement.”
Additional information regarding this previously announced
acquisition can be found on Northern’s Investor Relations website
at https://ir.northernoil.com/ including the press release and
presentation that were released in conjunction with the acquisition
announcement on April 22, 2019.
ABOUT NORTHERN OIL AND GAS
Northern Oil and Gas, Inc. is an exploration and production
company with a core area of focus in the Williston Basin Bakken and
Three Forks play in North Dakota and Montana.
More information about Northern Oil and Gas, Inc. can be found
at www.NorthernOil.com.
SAFE HARBOR
This press release contains forward-looking statements regarding
future events and future results that are subject to the safe
harbors created under the Securities Act of 1933 (the “Securities
Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”).
All statements other than statements of historical facts included
in this press release regarding Northern’s financial position,
business strategy, plans and objectives of management for future
operations, industry conditions, and indebtedness covenant
compliance are forward-looking statements. When used in this
release, forward-looking statements are generally accompanied by
terms or phrases such as “estimate,” “project,” “predict,”
“believe,” “expect,” “continue,” “anticipate,” “target,” “could,”
“plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other
words and similar expressions that convey the uncertainty of future
events or outcomes. Items contemplating or making assumptions about
actual or potential future sales, market size, collaborations, and
trends or operating results also constitute such forward-looking
statements.
Forward-looking statements involve inherent risks and
uncertainties, and important factors (many of which are beyond
Northern’s control) that could cause actual results to differ
materially from those set forth in the forward-looking statements,
including the following: changes in crude oil and natural gas
prices, the pace of drilling and completions activity on Northern’s
properties, Northern’s ability to acquire additional development
opportunities, changes in Northern’s reserves estimates or the
value thereof, general economic or industry conditions, nationally
and/or in the communities in which Northern conducts business,
changes in the interest rate environment, legislation or regulatory
requirements, conditions of the securities markets, Northern’s
ability to raise or access capital, changes in accounting
principles, policies or guidelines, financial or political
instability, acts of war or terrorism, and other economic,
competitive, governmental, regulatory and technical factors
affecting Northern’s operations, products, services and prices.
Northern has based these forward-looking statements on its
current expectations and assumptions about future events. While
management considers these expectations and assumptions to be
reasonable, they are inherently subject to significant business,
economic, competitive, regulatory and other risks, contingencies
and uncertainties, most of which are difficult to predict and many
of which are beyond Northern’s control. Northern does not undertake
any duty to update or revise any forward-looking statements, except
as may be required by the federal securities laws.
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Source: Northern Oil and Gas, Inc.
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version on businesswire.com: https://www.businesswire.com/news/home/20190702005047/en/
Nicholas O'Grady Chief Financial Officer (952) 476-9800
ir@northernoil.com
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