This acquisition marks SM Energy’s expansion into the Uinta Basin, a region known for its unique waxy crude oil. Credit: Jacob Boomsma/Shutterstock.

SM Energy and Northern Oil and Gas (NOG) have finalised their acquisition of oil and gas assets in the Uinta Basin from XCL Resources in a transaction valued at $2.55bn.  

The deal, which was initially announced in June, involves Denver-based SM Energy acquiring an 80% interest for $2.04bn, while NOG retains the remaining 20% for $510m.  

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This acquisition marks SM Energy’s expansion into the Uinta Basin, a region known for its unique waxy crude oil. 

SM Energy will now operate most of the acquired assets, which comprise approximately 63,300 net acres, an estimated 465 net drilling locations normalised to 10,000ft laterals and high oil content production of around 86–87%.  

The company has also reported estimated net proved reserves of approximately 110 million barrels of oil equivalent as of the effective date. 

For NOG, the acquisition provides it with a presence in the Uinta Basin, adding around 15,800 net acres with approximately 116 net underwritten undeveloped locations, along with the potential for further exploration.  

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The transaction also includes cooperation and long-term joint development agreements between NOG and SM Energy. 

SM Energy president and CEO Herb Vogel said: “We are excited to add a third core area of very high-quality assets to the SM portfolio. We look forward to welcoming new employees to the SM team from XCL Resources and Altamont Energy and to working in our new Utah communities.  

“The Uinta acquisitions add significant scale and long-term value creation opportunity for SM Energy via high-quality, oily stacked pay with outstanding well economics.” 

Last month, NOG completed its acquisition of Delaware Basin assets from Point Energy Partners.  

This acquisition was also a joint venture with Vital Energy, which will operate the majority of the assets.  

Vital Energy will own an 80% stake in Point’s assets, with NOG acquiring the remaining 20% for a total consideration of $1.1bn.