Minneapolis-based oil and gas producer Northern Oil & Gas said last week it is partnering with Vital Energy to acquire EnCap portfolio company Forge Energy II Delaware. Northern came forward after markets closed May 15 to announce it is acquiring for $162 million 30 percent interest in the Delaware Basin-focused company. Vital Energy said May 12 it acquired 70 percent interest for $378 million.
For Northern, the transaction will add 10,200 net acres, 30.5 net producing wells, 2.3 net wells in progress and about 20 net undeveloped drilling locations primarily in Reeves and Ward counties. Current two-stream production net to NOG is about 3,400 boed (79 percent oil). Northern expects to generate net output of 3,750 boed from the Forge assets in second half of 2023 while spending $17 million of net capital expenses.