MDU Purchases One-Half of Whiting's Midstream Assets Near Belfield, North Dakota

Updates

June 7, 2012: update from message board thread; from individual who worked on the project.

 

Original Post 

From Yahoo!InPlay:

MDU Resources subsidiary purchases interest in Bakken oil and natural gas midstream assets for $66 mln: through its wholly owned subsidiary, Bitter Creek Pipelines, LLC, announced an agreement purchasing a 50 percent undivided interest in Whiting Oil and Gas Corporation's natural gas and oil midstream assets near Belfield, N.D. in the Bakken area. 

Data points: the deal includes --

• Bitter Creed paid $66 million at closing; responsible for 60% of future CAPEX
• a newly constructed, state-of-the industry natural as processing plant and gathering system -- inlet processing capacity of 35 million cubic feet per day (35 MMcfd)
• plans to tie a natural gas residue line into the Williston Basin Interstate Pipeline Company (MDU)
• plans to build a crude oil gathering and storage terminal; pipeline to the Bridger Pipeline; oil terminal currently under construction; completion expected 3Q12; storage capacity of 20,000 bbls of oil
• Whiting will continue to operate the facilities

Win-win for all involved, but I think it demonstrates again the huge CAPEX required for these projects.

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