RimRock Oil goes all-in, buys into Williston Basin for $500M

By Luke Geiver | September 05, 2017

Just over one year after obtaining a $500 million line of equity investment from Warburg Pincus, RimRock Oil & Gas has spent it all. In a deal with Bakken major Whiting Petroleum Corp., RimRock has acquired roughly 30,000 net acres and 8,000 barrels of oil equivalent per day for $500 million.

Located on the Fort Berthold Indian Reservation within Dunn and McLean counties of North Dakota, the acreage gives James Fraser, a former energy firm executive new shale assets to develop.

“We are pleased to acquire these assets,” he said, “which include both meaningful and existing production and a substantial amount of highly attractive undeveloped acreage in the core of the Williston Basin.” Fraser indicated that the company may look to add other assets as well.

Since July of this year, Fraser and his team have been operating from Denver. In 2016, the company started out of Calgary.

Fraser formerly lead Talisman Energy’s North American shale division. He also spent time with Chesapeake Energy and Burlington Resources as an executive on the upstream sector.

Whiting Petroleum will use to proceeds of the sale to pay down $500 million in debt. James Volker, president and CEO of Whiting, said the assets involved in the sale represented roughly 7 percent of Whiting’s Q2 production total. Lease operating expsneses on the assets sold were in the $12.60 per BOE range, while Whiting said it’s other Bakken operated production had LOE’s of around $7.50/boe.