Tulsa-based Vital Energy and Northern Oil and Gas said Sunday they are acquiring assets of Point Energy Partners, portfolio company of Vortus Investments. The all-cash deal of $1.1 billion will increase Vital Energy’s position in Delaware Basin by 25 percent to 84,000 net acres. Vital Energy will own 80 percent of the assets with Northern owning the other 20 percent.
The assets primarily in Ward County are comprised of 16,300 net acres with April production of 30,000 boed (67 percent oil). Vital Energy said it will invest $45 million in 4Q with one drilling rig and seven completions. Closing is expected in 3Q.
Jason Pigott, president and CEO of Vital Energy, said, “This bolt-on is a great fit for us – adding high-value inventory and production in the heart of our core operating areas… It expands our growing Delaware Basin position and balances our Permian operations. We expect to continue to demonstrate our ability to capture, integrate and create substantial value on acquired assets.”
Northern’s 4,000 net acres in Ward County (operated by Vital Energy) reported recent production of 4,500 boed.