Update: On May 15, Northern Oil and Gas Inc. revealed itself as the third-party mentioned as part of Vital Energy's joint acquisition of Forge Energy II Delaware LLC.
Vital Energy Inc., Tulsa, Okla., in partnership with a third party, has agreed to acquire assets of Forge Energy II Delaware LLC, an EnCap company, to expand its Permian basin focus and establish a core operating position in the Delaware basin, the company said in a release May 12.
The two companies jointly agreed to acquire the assets in a $540 million all-cash transaction in which Vital Energy will acquire 70% of the assets for $378 million and serve as operator, while the third party will hold 30% for $162 million.
With the deal, Vital Energy adds nearly 42,000 gross acres (24,000 net) and current net production of about 9,500 boe/d (65% oil), expanding its Permian basin leasehold to about 198,000 net acres and establishing core operating positions in Pecos, Reeves, and Ward counties in Texas.
Vital Energy expects to operate one rig on the acquired properties, down from two rigs operated by Forge Energy, keeping production relatively flat, while increasing Vital Energy’s total Permian basin rig count to three.
Vital Energy said the deal adds about 100 gross high-value oil locations in the 2nd and 3rd Bone Spring and Wolfcamp A with potential upside in additional stacked formations.
The deal is expected to close in late second-quarter 2023, subject to customary closing conditions.
