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Home » UPDATE 1-Northern Oil and Gasoline in lead to purchase stake in Comstock Bakken belongings -sources

UPDATE 1-Northern Oil and Gasoline in lead to purchase stake in Comstock Bakken belongings -sources

(Provides Comstock response)

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By Arathy S Nair and Shariq Khan

Sept 17 (Reuters) – Northern Oil and Gasoline is the front-runner to purchase a stake in Comstock Assets’ Bakken belongings in North Dakota, three sources conversant in the matter instructed Reuters.

Northern Oil has bid about $170 million for a non-operated working curiosity within the belongings, one of many sources stated. A advertising doc seen by Reuters final month confirmed the worth of the holding at about $200 million primarily based on the costs of the commodity.

The sources declined to be recognized because the talks are confidential.

A Comstock spokesperson disputed that the corporate had obtained a bid for about $170 million and stated Comstock won’t present any further feedback as the method is confidential. Northern declined to remark.

The U.S. shale sector has seen a string of offers as corporations search to benefit from a close to 50% rise in crude costs, whereas trying to shore up money beneath investor stress, as an alternative of spending on boosting output.

The properties on supply embody 436 wellbores. The 427 actively producing wells within the portfolio most just lately had a six-month common internet manufacturing of 6,400 barrels of oil equal per day, the advertising doc stated.

The talks may nonetheless crumble, and Comstock’s majority proprietor, Jerry Jones, who additionally owns the Dallas Cowboys soccer staff, may flip to a different bidder for the belongings or pull the deal altogether if it can not attain an settlement.

Comstock’s resolution to dump its Bakken belongings comes as deal exercise is rising within the Haynesville shale in Louisiana, the place it produces most of its vitality. Southwestern Vitality just lately purchased Indigo Pure Assets, and Chesapeake Vitality acquired Vine Vitality.

Northern earlier this 12 months had acquired some non-operated pursuits in Texas’ Permian basin for about $102 million and in Pennsylvania’s gas-heavy Marcellus basin for $126 million. (Reporting by Arathy S Nair in Bengaluru; Modifying by Anil D’Silva and Leslie Adler)

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