Northern Oil and Gas ( NYSE: NOG ) said Wednesday it agreed to acquire a 36.7% working interest in the Mascot Project, in the core of the Midland Basin, from Midland-Petro D.C. Partners for $330M in cash.
Northern ( NOG ) said the acquisition includes producing properties and associated midstream assets, plus 62 gross in-process and future wells in Midland County, Texas, with a sub-$40/bbl average breakeven.
The company expects production from the acquired properties to average 4,400 boe/day in Q1 2023 and 6,450 boe/day for FY 2023.
Northern ( NOG ) said the deal provides a "clear line of sight to significant free cash flow generation with 22.8 net undeveloped and in-process locations, all scheduled to be developed over the next two years."
Northern Oil and Gas ( NOG ) could generate ~$700M in positive cash flow in 2023 at current strip prices, Elephant Analytics writes in an analysis posted recently on Seeking Alpha .
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Northern Oil buys stake in Midland Basin development project for $330M