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Colorado-based energy company Whiting Petroleum Corp. announced it’s selling it a portion of its North Dakota assets, reported the Denver Business Journal today.
The deal between Whiting and RimRock Oil & Gas Williston LLC is said to be worth around $500 million. The sale includes Whiting’s Forth Berthold Researvation area assets located in Dunn and McLean Counties.
Whiting executives said they’ll use the profits from the deal to repay $500 million of its current $550 million bank debt.
James Volker, Whiting Petroleum CEO, president, and chairman, said in a statement:
The Fort Berthold properties represent only approximately 7 percent 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 Denver Business Journal also noted that Whiting also recently sold interest in its Robinson Lake natural gas processing plant in Mountrail County and its 50 percent interest in its Belfield natural gas processing plant in Stark, Billings, and Dunn Counties for $375 million.
In July 2014, Whiting became the largest Bakken shale producer after its purchase of Kodiak Oil & Gas for $6 billion. Back then, North Dakota was producing over a million barrels of oil a day.
The transaction between Whiting and RimRock is expected to close on September 1 of this year.
Related: Whiting suspends fracking, cuts budget 80 percent – investors cheer
What’s the update? Who are the bidders for the acquisition of North Dakota Assets?
I haven’t seen an update! Will keep you posted as we find out more.