Emerald Oil to acquire land in North Dakota, US

US-based exploration and production company Emerald Oil has signed two purchase and sale agreements with unrelated sellers to acquire additional core Bakken and Three Forks producing properties and an undeveloped leasehold in McKenzie and Williams counties in North Dakota.

The transactions, which come to a total of $74.6m, are expected to increase the company’s leasehold to around 85,000 net acres in the Williston basin.

Emerald will acquire around 20,800 net acres, including 19,500 highly contiguous to its Low Rider operating area in McKenzie county, and around 350 barrels of oil equivalent a day of estimated current net production. Around 62% of the acreage is currently held by production.

The company will also acquire 19 operated drilling spacing units (DSUs), of which 17 are situated in the Low Rider area and two in the Easy Rider area.

Emerald Oil CEO McAndrew Rudisill said that the acquisitions follow the company’s strategy of identifying and acquiring contiguous leaseholds in the firm’s immediate operating areas.

"This additional acreage expands Emerald’s presence in our Low Rider and Lewis & Clark focus areas of McKenzie County, ND where we have seen strong production growth as a result of our successful operated well programme," Rudisill added.

"The proposed acquisitions are immediately accretive on all per-share metrics. Emerald remains well positioned to execute on our previously announced 2014 capital spending programme and will be giving updated guidance upon close, which currently is scheduled for February 13."