Multi-million-dollar oil and gas deals in the Permian Basin mark recovery from COVID-19

Oil and gas’ interest in the Permian Basin of southeast New Mexico and West Texas continued to rise. This is as multiple deals valued at more than $100 million were announced. It was in recent weeks while production ramped up on the heels of COVID-19.

Production slowed as travel and business restrictions stymied fuel demand. This was when the health crisis first hit the U.S. in March 2020. Now vaccines are available, they are lifting restrictions and demanding recovery. This is how production is rebounding.

Minnesota-based Northern Oil and Gas announced it bought out Permian Basin assets. It is by Veritas Energy for about $406 million. It includes assets in the western Delaware sub-basin and the eastern Midland Basin.

Involving the non-operational lands in the sale are in Lea and Eddy counties in southeast New Mexico. It is along with Loving, Reeves, and Ward counties in Texas. There is an expectation that it will generate about 11,500 barrels of oil per day.

“The Veritas transaction marks our fourth significant transaction in 2021 as we return focus to the Delaware basin, further scaling our business and building inventory with premier operators,” he said. “Northern continues to set the standard for non-operated energy management and will remain steadfast in our focus on consolidating high quality, low-breakeven assets.”

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Source: Carlsbad Current-Argus

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