Vital Energy Inc. and Northern Oil and Gas Inc. (NOG) are teaming up to acquire the assets of Forge Energy II Delaware LLC, an EnCap Investments LP portfolio company based in the Permian Basin, in a $540 million all-cash transaction.

The Forge assets in the Delaware sub-basin span nearly 42,000 gross acres across Pecos, Reeves and Ward counties in West Texas.

Under the deal, which is slated to close by the end of June, Vital would acquire a 70% operating interest in the assets for $378 million, with NOG taking a 30% non-operated interest for $162 million.

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