SHARE
Image courtesy of Emerald Oil.

Denver-based Emerald Oil signed a deal for 27,400 acres in Bakken with private equity-backed Liberty Resources II.

The deal is worth $110 million dollars in cash and land swaps, Emerald said Monday.

Emerald will transfer 4,175 net acres in Williams County, North Dakota to Liberty and pay approximately $78.4 million in cash for the new acreage.

Emerald, a privately owned exploration and production company, now owns 49,727 net acres in Bakken.

The new acreage is split between areas contiguous to and in Emerald’s Low Rider and Lewis & Clark projects.

These operating areas have proved reserves of 2.0 million barrels of oil equivalent and a value net of expenses and minus 10 percent per year of $51.5 million.

The deal includes 23 new operated drilling spacing units (DSU).

Emerald also gains working interest in 13 DSUs and 157 drilling locations in Low Rider and Lewis & Clark.

Emerald holds about 95 percent of the acreage and operates 75 percent.

The deal won’t cause any material change to Emerald’s 2014 financial or operational guidance.