Natural Resources Partners L.P. has entered into an agreement with Abraxas Petroleum Corporation to purchase non-operated working interests in producing oil and gas properties in the Bakken/Three Forks play. These assets are located in the Williston Basin of North Dakota and Montana.
Natural Resources will pay $35.3 million in cash for an 11 percent stake in about 13,500 acres. The assets include 120 producing wells, as well as interest in 22 wells that are in various stages of development.
"This acquisition marks NRP's strategic entry into the Bakken play and into owning non-operated working interests in oil and gas assets," said Nick Carter, president and chief operating officer of NRP in a released statement. "This adds further diversity to NRP's revenue going forward."
The company plans to fund $8.1 million in additional capital expenditures connected with these wells in 2013, a portion of which will be paid at closing, the statement added.
Closing is scheduled for the third quarter of 2013.
Abraxas plans to use the proceeds from this sale to pay down debt, the company said in a release.
“This is obviously a transformational day for Abraxas as we significantly reduce our leverage while simultaneously shifting our focus to a core operated portfolio," Bob Watson, president and CEO of Abraxas.
Abraxas is a San Antonio-based crude oil and natural gas exploration and production company with operations across the Rocky Mountain, Mid-Continent, Permian Basin and onshore Gulf Coast regions of the United States and in the province of Alberta, Canada.
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