The W Energy properties represent about 6,750 barrels of oil equivalent (BOE) per day of production, a figure encompassing both oil and natural gas. The deal will be meaningfully accretive on a cash-flow and earnings basis upon closing, Northern Oil said.
The company also announced Tuesday that its preliminary second-quarter average production will be more than 21,000 BOE, substantially above consensus estimates by stock analysts.
Northern Oil’s stock on Tuesday rose 30 cents or nearly 9 percent, closing at $3.72.
Northern Oil invests in leases and drilling projects in
“The W Energy acquisition will add robust drilling inventory under some of the best acreage in the
The W Energy deal marks the second acquisition that Northern Oil has unveiled in the past two weeks.
The company also agreed to pay $68.4 million and 25.75 million shares of Northern Oil stock for producing wells owned by
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