NOG has signed cooperation and joint operating agreements with Vital. Credit: LiteHeavy/ shutterstock.com.

US-based Northern Oil and Gas (NOG) has acquired certain Delaware Basin assets in the US from Forge Energy II Delaware, a portfolio company private equity firm EnCap, for $167.9m.

NOG, in partnership with Canadian oil and gas company Vital Energy, announced the deal with Forge Energy in May 2023.

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As part of the deal, Vital Energy and NOG agreed to acquire 70% and 30% stakes in the Delaware Basin assets, respectively, from Forge Energy.

The assets covered under the agreement are primarily located in the Ward and Reeves counties, Texas. These include around 10,200 net acres, 30.5 net producing wells, 2.3 net wells-in-process and around 20 low-breakeven net undeveloped locations.

NOG CEO Nick O’Grady earlier said: “This transaction crystallises NOG’s position as a reliable and consistent partner for the purchase and development of high-quality properties.

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“We are excited to work alongside our partners at Vital to develop the Forge Assets with strong alignment and cooperation.”

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NOG said the assets would produce an average of more than 3,750 barrels of oil equivalent per day, and require capital expenditure of around $17m for the second half of this year.

In connection with the deal, NOG has signed cooperation and joint operating agreements with Vital. The agreements include a multi-year development plan for the Forge assets.

NOG said in a statement: “The closing settlement is net of preliminary and customary purchase price adjustments and remains subject to post-closing settlements between the parties.”