Page 20 - NorthAmOil Week 01 2021

NorthAmOil NEWS IN BRIEF NorthAmOil

levels in November and December, Northern
is narrowing its Q4 2020 production guidance
from 30,000-40,000 boe per day to 34,000-
36,000 boe per day. Additionally, with higher
propane and natural gas prices, Northern
expects steady improvements to its natural
gas realisations, as higher prices absorb fixed
gathering and processing fees.
Northern has seen an increased
backlog of acquisition opportunities, from
individual wellbores to large asset packages.
As of January 2021, Northern’s backlog of
acquisition opportunities exceeds $1bn in
potential deal value. Northern retains its strict
hurdle rates and any potential transactions
must meet its high standards regarding asset
Basin. The sale is expected to close on or consideration and approximately 12.7mn quality and total returns. Northern executed
around March 4, 2021 and will have a January shares of Earthstone’s Class A common stock on $8.4 million in acquisitions in the fourth
1, 2021 effective date. Following the closing, valued at $50.8mn based on a closing share quarter, inclusive of $1.8mn in equity-
the company will have divested substantially price of $3.99 on December 16, 2020. based consideration which was previously
all of its upstream assets. The company’s only EARTHSTONE ENERGY, January 07, 2020 disclosed. This resulted in the acquisition
remaining upstream oil and gas assets will of 1.0 net producing well, 3.6 net wells in
consist of approximately 24,000 net leasehold Laredo Oil purchases process, 655 net acres, and 373 net royalty
acres, 23,000 net mineral acres and 40 non- acres (standardised to a 1/8 royalty interest).
operated wells, all located in East Texas, Stranded Oil Resources Across the 11 transactions, four targeted the
Oklahoma and Louisiana, which the company Permian Basin and accounted for 1.1 net wells
anticipates divesting in early 2021. Laredo Oil announced today that it acquired in process, 219 net acres and 0.6 net undrilled
Using proceeds from the sale, the company 100% of the stock of Stranded Oil Resources locations.
will pay off approximately $13mn in debt Corporation (SORC), a direct, wholly-owned NORTHERN OIL AND GAS, January 07, 2020
under its existing reserve-based credit subsidiary of Alleghany Corporation, in a
facility and make a cash distribution to its transaction that closed on December 31, 2020.
unitholders. The details of the distribution “SORC has invested more than $100mn MIDSTREAM
are expected to be announced in early March in R&D and field development and owns
2021. the enhancements to UGD 3.0, an improved Precision Pipeline selected
Joseph A. Mills, president and CEO of version of our enhanced oil recovery
the company stated: “We are very pleased to technique utilized to produce oil from by TC Energy to help
announce the sale of our Powder River Basin horizontally developed or mature pressure-
assets. When this sale closes, it will conclude depleted oil fields. With this acquisition of construct Keystone XL
the four-year process of monetising Samson’s SORC, Laredo now has exclusive rights to
assets and delivering a strong cash return to utilise that technology on its own assets and Precision Pipeline (PPL), a MasTec company,
our equity owners following our emergence those of operators worldwide,” said Mark See, has been awarded a contract from TC Energy
from bankruptcy in March 2017.” Chairman and CEO of Laredo Oil. Corporation for the construction of the
Following the closing, the company, which LAREDO OIL, January 05, 2021 Keystone XL Pipeline in Montana and South
was started by Charles Schusterman in 1971, Dakota.
will begin the process of winding down its Northern Oil and Gas “We are extremely proud to put PPL
affairs and moving toward final dissolution. employees and more than 1,600 American
SAMSON RESOURCES II, January 04, 2020 announces business and union members to work on completing this
important infrastructure project, which
Earthstone Energy operations update will also provide a boost to local economies
along the project route,” says Bobby Poteete,
completes acquisition of Northern Oil and Gas today announced a President of PPL. “As a Wisconsin business,
we’re proud to be awarded such a large
business and operations update. Northern
Independence Resources has seen steady and continued improvement contract for a significant North American
infrastructure project and we look forward to
in operations throughout the fourth quarter
Management of 2020. Operators have continued to return working with TC Energy, local communities
shut-in and curtailed production to sales at a
and businesses to bring Keystone XL to life.”
Earthstone Energy today announced that steady rate. Northern has also seen increased “We are proud to be associated with such
it has completed the previously announced development and completion activity due in a well-thought-out project that has evolved
acquisition of Independence Resources part to improved pricing. Northern’s wells in into being inclusive to all its constituents.
Management. The aggregate purchase process inventory remains at or near all-time With a significant equity investment by the
price for the acquisition was approximately highs, with 28.1 net wells as of December 31, Indigenous communities and a commitment
$182.0mn, consisting of $131.2mn in cash 2020. Given improved pricing and activity to construct the project with an all-union

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