Northern Oil and Gas, Inc. (NYSE American: NOG) announced that it has entered into an agreement to acquire production in North Dakota, currently producing over 4,100 BOEPD.
The asset is being acquired from Pivotal Petroleum Partners, a portfolio company of funds managed by Tailwater Capital LLC. Total consideration at closing will consist of $68.4 million in cash and 25.75 million shares of Northern common stock.
Pivotal will be subject to a lock-up on the shares over a 13-month post-closing period. The agreement also allows for potential additional consideration to be paid during the 13-month lock-up period if Northern’s common stock trades below certain price targets.
Northern expects the acquired asset to generate approximately $56 million of cash flow from operations over the next twelve months and the deal is expected to close in approximately 60 days, with an effective date of June 1, 2018.
The Oil and Gas Conference®
Northern Oil and Gas is presenting at EnerCom’s The Oil & Gas Conference® at the Denver Downtown Westin Hotel, Denver, Colo. Aug. 19-23, 2018. EnerCom expects to have more than 80 presenting oil and gas companies and more than 2000 financial professionals attending this year’s conference.
To learn more about the conference and presenter schedule please visit the conference website here.
