Northern Oil and Gas Inc. (NOG) closed its previously announced acquisition of Delaware Basin assets from Forge Energy II Delaware LLC, an EnCap portfolio company for $167.9 million in cash, the company said in a June 30 press release.
On May 15, NOG said it would jointly acquire the assets with Vital Energy Inc. Vital, which will become the operator of the assets, agreed to purchase 70% of Forge’s assets for $378 million and NOG purchased the remaining 30%.
In connection with the transaction, NOG and Vital entered into cooperation and joint operating agreements, which include a multi-year development plan for the Forge assets.
NOG initially announced it would pay $162 million in cash for the interests. The closing settlement is net of preliminary and customary purchase price adjustments and remains subject to post-closing settlements between the parties.
Minnesota-based NOG is also party to a pending $1.5 billion deal to purchase Novo Oil & Gas alongside Earthstone Energy Inc. In that deal, Earthstone agreed to purchase two-thirds of Novo’s northern Midland Basin assets for $1 billion. NOG agreed to acquire a 33.33% undivided stake in Novo’s assets for an additional $500 million. Novo is also backed by EnCap Investments LP.