Northern Oil and Gas purchases Reliance Marcellus assets for $250M
Friday, April 9, 2021
Northern Oil and Gas recently announced it purchased Reliance Industries assets in the Marcellus Shale play for $250 million, according to Natural Gas World.
The company paid nearly $121 million in cash and issued 3.25 million of common stock warrants for the business.
The business is expected to produce 75-85 mcf per day and receive $20-25 million of capital expenditure in 2021. Northern has hedged 66% of the assets’ forecasted gas production in the remainder of the year at an average price of $3/m Btu, and 33% of their projected output in the first quarter of 2022 at $3.17/m Btu.
Learn more: Natural Gas World > Northern closes $250MN reliance purchase
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