WASHINGTON (dpa-AFX) - MDU Resources Group Inc. (MDU), through its wholly owned subsidiary, Bitter Creek Pipelines LLC, announced a deal purchasing a 50 percent undivided interest in Whiting Oil and Gas Corporation's natural gas and oil midstream assets near Belfield, N.D. in the Bakken area.
The facilities include a newly constructed, state-of-the-industry natural gas processing plant and a natural gas gathering pipeline system connected to the plant.
The Belfield natural gas processing plant has an inlet processing capacity of 35 million cubic feet per day. The oil terminal is now under construction, with completion expected in the third quarter of 2012. It would have a storage capacity of 20,000 barrels of oil.
Bitter Creek paid $66 million at closing to buy its interest in the facilities and would be responsible for 60 percent of certain future capital expenditures as specified in the deal.
Oil and natural gas production from Whiting's Pronghorn acreage in Stark and Billings counties, combined with adjacent Stark County acreage owned by Fidelity Exploration & Production Co, would supply these facilities. Fidelity and Whiting currently have a combined seven rigs operating in the acreage feeding the facilities.
Copyright RTT News/dpa-AFX
