Last week Hess Corporation announced the acquisition of American Oil & Gas, a Denver based independent that focuses on the Bakken and Three Forks formations. In an all stock transaction Hess added to their over 500,000 net acres in the Bakken with the addition of approximately 85,000 net acres. The acquired acreage is west of the Nesson anticline near the Tioga processing plant. Three rigs will operate the acreage in addition to their 8 rigs that are currently operating in other parts of the play. They plan to drill dual laterals in the area, similar to their phase 1 acreage, which cost $10-$11 million per dual lateral.
Greg Hill, President of Worldwide Exploration and Production at Hess had this to say about the acquisition, “This acquisition builds upon our strong land position in the Bakken, leverages our nearby infrastructure and offers operational synergies.”
To get the latest update of American Oil & Gas well activity see my Bakken Updates from Brigham and American O&G blog. To get more information visit the Bakken Operators Folder in the Unconventional Updates in DI’s DNA.
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