Whiting Petroleum to sell assets in North Dakota's Bakken for $500 million


DENVER -- Whiting Petroleum Corporation has agreed to sell its Fort Berthold Indian Reservation area assets, located in Dunn and McLean Counties, N.D., to RimRock Oil & Gas Williston, LLC. The cash purchase price is $500 million, subject to customary adjustments. Whiting will use the net proceeds from the sale to repay $500 million of its current $550-million bank debt. The effective and closing date of the sale is Sept.1, 2017.

James J. Volker, Whiting's chairman, president and CEO, commented, "The price received for these properties, which are largely non-operated, highlights the quality of Whiting’s Bakken/Three Forks assets. The Fort Berthold properties represent only approximately 7% of Whiting’s second quarter total production. The sale provides Whiting additional liquidity to develop its industry-leading properties across the Williston basin, where the Company estimates it has 4,850 future gross drilling locations.”

The properties span 29,637 net acres, 29 non-operated drilling spacing units and 17 operated. Net daily production from the properties averaged 7,785 boed in second-quarter 2017. Lease operating expense (LOE) for the properties averaged approximately $12.60/boe for the 12 months ending June 30, 2017. Whiting’s other operated Bakken production averaged $7.50/boe.

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