- Total consideration of approximately $1.38 billion in cash, subject to customary pre-closing and post-closing adjustments
- Effective date of July 1, 2012, with estimated closing date on or before September 27, 2012
- Aggregate current net production approximately 10,500 barrels of oil equivalent per day (Boepd)
- Aggregate net proved and probable reserves of approximately 125 million barrels of oil equivalent (MMBoe), comprised of approximately 81% crude oil, 9% NGL and 10% natural gas
- Approximately 27,600 net acres of predominantly fee simple mineral leases with an average 80% net revenue interest (NRI)
- Approximately 90% of aggregate net acreage to be acquired will be operated by QEP after closing (presently operated by Helis Oil & Gas Company LLC of New Orleans, Louisiana)
- 24 operated spacing units with an average gross working interest of 82% with an average NRI of 66%
- 27 non-operated spacing units with an average gross working interest of 10% with an average NRI of 8%
- Above Williston Basin-average well estimated ultimate recoveries or EURs for both Bakken and Three Forks formations in the contiguous, operated acreage block. For long-lateral wells drilled after January 1, 2010:
- Average Bakken EUR of 1,160 thousand barrels of oil equivalent (MBoe)
- Average Three Forks EUR of 990 MBoe
- The Bakken and Three Forks formations are both prospective across all of the acreage and will be developed by separate horizontal wells targeting each formation
- Aggregate of 72 gross (29 net) developed locations and 301 gross (146 net) undeveloped locations
- QEP estimates future net development capital for all acquired assets to be approximately $1.59 billion
- Acquisition will increase QEP's net acreage in the Williston Basin to approximately 118,000 acres
- The company expects to fund the Acquisition with proceeds from its revolving credit facility and cash on hand
QEP Resources Inc. Signs Agreements To Acquire Additional North Dakota Oil Properties
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