Liberty Resources II LLC Announces Bakken Asset Transaction
Liberty Resources II LLC ("Liberty" or the "Company") today announced the signing of a definitive agreement with Emerald Oil, Inc. (NYSE MKT: EOX) to exchange a portion of its holdings in North Dakota's Williston Basin for additional acreage in the Williston Basin and approximately $78.4 million in cash. In addition to the cash received, Liberty will acquire approximately 4,175 net acres in Williams County, North Dakota which will add an estimated 30 operated drilling locations to the Company's current portfolio. As part of the transaction, Liberty will divest approximately 31,500 non-core acres in McKenzie County, North Dakota with current net production of approximately 400 BOE/day. The transaction has an effective date of May 1, 2014 and is expected to close in early September. At closing, the purchase price will be adjusted for customary effective date purchase price adjustments.
Liberty's CEO, Chris Wright, commented, "This is an exciting transaction that provides additional drilling locations in our prime development area in Williams County, as well as additional liquidity to accelerate development activity and continue to grow our holdings in this key area. The transaction allows us to continue to execute our plan of acquiring high-quality acreage and efficiently develop it using optimal completion procedures."
Liberty had identified a significant inventory of approximately 100 high-quality Bakken and Three Forks drilling locations in Williams County on its acreage position held prior to the transaction.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.