NOG joins Vital Energy in Forge Energy acquisition in Permian basin for $162 million

(WO) – Northern Oil and Gas, Inc. has entered into a definitive agreement to acquire a 30% undivided stake in the Forge Assets in the Delaware basin, in partnership with Vital Energy, Inc., for a purchase price net to NOG of $162 million in cash.

The Acquired Assets are primarily located in Ward and Reeves Counties, Texas and include approximately 10,200 net acres, 30.5 net producing wells, 2.3 net wells-in-process and roughly 20 low-breakeven net undeveloped locations. Upon closing, the operator of the assets will be Vital, with NOG participating in development pursuant to cooperation and joint operating agreements entered into with Vital in connection with the acquisition.

Recent production on the acquired assets was approximately 3,400 boed (2-stream, 79% oil). For the second half of 2023, NOG expects average production of roughly 3,750 boed (2-stream, 79% oil) and approximately $17 million of capital expenditures.

“This transaction crystallizes NOG’s position as a reliable and consistent partner for the purchase and development of high-quality properties,” commented Nick O’Grady, NOG’s Chief Executive Officer.

“As we enter into this joint acquisition, we are taking NOG’s capabilities and opportunity set to the next level, adding yet another arrow to our M&A quiver,” commented Adam Dirlam, NOG’s President. “The Forge Assets are high-quality with the opportunity for clear and concise development to deliver the consistent performance our investors have come to expect.”