Minneapolis-based Northern Oil and Gas said Sept. 30 it will acquire assets in Delaware Basin from Midland-based Alpha Energy Partners for $157.5 million. The assets in Eddy and Lea counties in New Mexico and Loving County in Texas include 2,800 net acres, 9.6 net producing wells, 2.8 net authorized or in-progress wells, and 21.2 net drilling locations primarily operated by Mewbourne Oil.
“These assets are squarely in our core focus area and are poised to deliver substantial growth over the coming years,” Nick O’Grady, CEO, said. Adam Dirlam, president, added, “This asset has some of the highest quality, lowest cost inventory we have acquired.
Average production expected for 2023 for the acquisition is 3,000 to 3,500 boed (68 percent oil) with more than 4,000 boed expected for 2024 and 2025.