NOG Announces First Acquisition In The Delaware Basin -- September 10, 2020

NOG: announces first acquisition in the Delaware Basin. operational update. Link here to press release.

• Delaware Basin acquisition includes acreage and proposed wells in Lea County, NM operated by EOG Resources 
• Northern expects monthly peak production from the acquisition of approximately 1,400 barrels of oil equivalent per day in mid-2021 
•  Northern expects the transaction to be accretive to EV / EBITDA, corporate return on capital employed, earnings per share, and free cash flow metrics in 2021 and beyond 
• Northern is providing an operations update, adjusting Q3 2020 production guidance upward to 25,000 – 30,000 Boe per day 

Delaware acquisition:

• 66 net acres
• 1.1 initial net wells
• seller: undisclosed
• total acquisition costs: $11.9 million
• $11.9 million / 66 net acres + 1.1 net wells
• assume $10 million for the 1.1 net wells
• $1.9 million / 66 net acres = $30,000 / acre

Bakken operators are tracked here. NOG is tracked here.