Page 9 - NorthAmOil Week 33 2022

NorthAmOil NEWS IN BRIEF NorthAmOil

Tellurian completes NOG announces Midland
UPSTREAM
Laredo Petroleum Haynesville Basin Basin bolt-on acquisition

announces divestiture acquisition Northern Oil and Gas (NOG) today
announced that it has entered into an
of Howard County non- Tellurian today announced that its wholly agreement to acquire properties in the
Midland Basin.
owned subsidiary, Tellurian Production
operated properties for (TPC), has closed the previously announced agreement to acquire non-operated interests
NOG has entered into a definitive
acquisition of certain assets in the Haynesville
$110mn from privately held EnSight IV Energy in the Midland Basin for a purchase price of
Partners and EnSight Haynesville Partners.
$110mn in cash, subject to typical closing
Laredo Petroleum today announced the The cash consideration at closing was adjustments. NOG expects to fund the
signing of a purchase and sale agreement $125.5mn, revised from the announced acquisition with cash on hand, operating
to divest certain non-operated properties $125mn due to preliminary purchase price free cash flow and borrowings under NOG’s
in Howard County for $110mn, subject to adjustments. The consideration was funded revolving credit facility.
customary closing price adjustments. The with cash on hand. At closing, production on the assets is
transaction is expected to close in October Tellurian president and CEO Octávio expected to be greater than 1,600 boe per
2022, with an effective date of August 1, 2022. Simões said: “This closing represents day (2-stream, ~87% oil) and NOG expects
The non-operated assets comprise ~1,650 significant progress for Tellurian and our average production of over 1,800 boe per day
net acres and have expected full-year 2023 business model. By owning and operating over the next twelve months post-closing
average net production of ~1,800 boepd upstream assets, a pipeline network and the (2-stream, ~86% oil). NOG expects less than
(~72% oil). The company plans to adjust Driftwood LNG terminal, Tellurian will have $5mn of capital expenditures to be incurred
production guidance post the closing of the the ability to sell natural gas into domestic or post-closing in 2022 and does not anticipate
transaction. international markets. This combination of revising 2022 capital expenditure guidance for
The sale does not reduce the company’s assets represents a compelling value for our the acquisition. These high-quality properties
eight-year inventory of operated, high-quality shareholders.” have operating costs lower than NOG’s
drilling locations. John Howie, president of TPC, corporate average.
“We have built a deep portfolio of high- commented: “The EnSight acquisition is The acquired assets are located in Howard
quality development locations, which we an excellent strategic and operational fit for County, Texas and include approximately
consistently optimise through the acquisition Tellurian. The combination of our existing 1,600 acres, 6.4 net producing wells, 1.6 net
of high-return assets and sale of certain non- assets with this acquisition results in an wells-in-process and approximately 8 net
core properties,” commented Jason Pigott, acreage position of more than 20,000 acres undeveloped locations. Substantially all of the
president and chief executive officer. “The and an inventory of more than 275 high assets are operated by SM Energy.
implied value of this divestiture is accretive return, de-risked drilling locations, most The effective date for the transaction is
to our net asset value1 per share and raises of which we can drill opportunistically for August 1, 2022, and NOG expects to close the
proceeds that support the repurchase of our incremental free cash flow.” transaction in October 2022. The obligations
equity and debt.” TELLURIAN, August 18, 2022 of the parties to complete the transactions
LAREDO PETROLEUM, August 17, 2022 contemplated by the purchase agreement
are subject to the satisfaction or waiver of
customary closing conditions.
NORTHERN OIL AND GAS, August 17, 2022

MIDSTREAM
Energy Transfer completes

sale of its interest in Energy

Transfer Canada

Energy Transfer announced today the
completion of the sale of its 51% interest
in Energy Transfer Canada ULC (Energy
Transfer Canada) to a joint venture which
includes Pembina Pipeline Corporation and
global infrastructure funds managed by KKR.
The sale of these assets allows Energy Transfer
to further deleverage its balance sheet and
redeploy capital within its US footprint, which
consists of a portfolio of energy assets with

Week 33 18•August•2022 www. NEWSBASE .com P9