Williams said Tuesday that it has completed its previously announced purchase of a large stake in North Dakota's Bakken oil play from private owners for $925 million in cash.
In the deal, Williams bought 100% of interests in a company called Dakota-3 E&P, giving it about 85,800 net acres on the Fort Berthold Indian Reservation in the Williston Basin. This includes 3,300 b/d of net oil production from 24 existing wells, the company said in a statement.
The holdings include about 185 million barrels of oil equivalent in the Middle Bakken and the Upper Three Forks formations, Williams said.
The purchase has an effective date of October 1, subject to standard closing adjustments.
"Williams is the new owner of Dakota-3, which will continue its existing contractual arrangement for services with the contract operator and field services provider after closing," Williams said.
The Tulsa, Oklahoma-based company also plans to double Dakota-3 E&P's current number of drilling rigs in that area to six by 2012, if permits are approved.
The company expects to spend $60 million for drilling and development this year on the Bakken acreage and $200 million-$300 million in 2011, it said when it announced the deal November 15.
Williams has also bought about 100,000 net acres over the past 18 months in the gas-rich Marcellus Shale in Pennsylvania.
In the deal, Williams bought 100% of interests in a company called Dakota-3 E&P, giving it about 85,800 net acres on the Fort Berthold Indian Reservation in the Williston Basin. This includes 3,300 b/d of net oil production from 24 existing wells, the company said in a statement.
The holdings include about 185 million barrels of oil equivalent in the Middle Bakken and the Upper Three Forks formations, Williams said.
The purchase has an effective date of October 1, subject to standard closing adjustments.
"Williams is the new owner of Dakota-3, which will continue its existing contractual arrangement for services with the contract operator and field services provider after closing," Williams said.
The Tulsa, Oklahoma-based company also plans to double Dakota-3 E&P's current number of drilling rigs in that area to six by 2012, if permits are approved.
The company expects to spend $60 million for drilling and development this year on the Bakken acreage and $200 million-$300 million in 2011, it said when it announced the deal November 15.
Williams has also bought about 100,000 net acres over the past 18 months in the gas-rich Marcellus Shale in Pennsylvania.
