Minneapolis-based Northern Oil and Gas said last week it agreed to acquire substantially all non-operated Permian Basin assets owned by certain affiliates of Fort Worth-based Veritas Energy for $406.5 million. The assets of about 6,000 net acres are located in Delaware and Midland basins in Eddy and Lea counties in New Mexico and Loving, Reeves, Ward and Winkler counties in Texas. Current two-stream net production is 9,100 boed (60 percent oil) from 31.7 net producing wells. Closing is expected in 2022Q1. Largest operators on the assets are Mewbourne Oil, Devon Energy, ConocoPhillips and EOG Resources, who account for 64 percent of expected 2022 production of 10,500 boed.
Adam Dirlam, Northern COO, said Nov. 16, “The Veritas transaction marks our fourth significant transaction in 2021 as we return focus to the Delaware Basin, further scaling our business and building inventory with premier operators.”