Earthstone Energy to buy Delaware Basin-focused Novo Oil & Gas for $1.5 bln (updated)

Earthstone Energy

15/06/2023 12:47

(Adds details and background on deals in graphs 2-5)
       June 15 (Reuters) - Earthstone Energy Inc  ESTE.N  said
on Thursday it would buy Novo Oil & Gas Holdings, a privately
held Delaware Basin-focused production company backed by EnCap
Investments, for $1.5 billion.
    Delaware Basin, a part of the wider Permian Basin, is a
prime target for producers looking to increase their inventory.
    The shale patch, which lies between Texas and New Mexico,
has the necessary infrastructure and is known for high
productivity and large undeveloped reserves.
        Earthstone said that Northern Oil and Gas Inc  NOG.N 
would also buy some working interests in Novo for $500 million,
resulting in a $1 billion purchase price net to Earthstone.
        The Novo deal is expected to close in the third quarter
of 2023. 

 (Reporting by Arunima Kumar in Bengaluru; Editing by Shilpi
Majumdar)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94
 ;))