Northern Oil and Gas Inc. is progressing its second possible acquisition of the year, this time in the Permian Basin, with a 1,600 net acre addition in the West Texas Midland sub-basin.

Northern has started the process of acquiring nonoperated assets in Howard County, TX, from Laredo Petroleum Inc. for $110 million. The mostly oil-producing (87%) assets with an average estimated production of 1,800 Boe/d include 6.4 net producing wells, 1.6 net wells-in-process and around eight net undeveloped locations.

CEO Nick O’Grady said the expansion met its criteria for “quality and low-breakeven” assets that help Northern vary its portfolio while sticking to a disciplined capital program.

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