Northern Oil and Gas exercises option to purchase Uinta Basin assets

Northern Oil and Gas announced that it has exercised its option to acquire a 20% undivided stake in the Altamont Assets in partnership with SM for a purchase price, net to NOG, of $17.5M in cash, subject to customary closing adjustments. The Acquired Assets are located primarily in Uintah and Duchesne Counties, Utah and include approximately 6,500 net acres. NOG’s initial estimates are for approximately 18 net undeveloped locations on the properties and ~250 Boe per day of expected production. Altamont was previously under contract with XCL Resources and was offered to NOG and SM under a right of first refusal in connection with the XCL asset acquisition. Upon closing and transition of services, the operator of substantially all of the assets will be SM, with NOG participating in development pursuant to cooperation and joint development agreements entered into in connection with the XCL asset acquisition. NOG expects to close the transaction simultaneously with the closing of the XCL asset acquisition in early Q4 2024. The obligations of the parties to complete the transactions contemplated by the acquisition agreement are subject to the satisfaction or waiver of customary closing conditions.