Liberty Resources II LLC has signed a definitive agreement with Emerald Oil, Inc. to exchange a portion of its holdings in North Dakota's Williston Basin for additional acreage in the Williston Basin and approximately $78.4 million in cash. In addition to the cash received, Liberty will acquire approximately 4,175 net acres in Williams County, North Dakota which will add an estimated 30 operated drilling locations to the Company's current portfolio.
As part of the transaction, Liberty will divest approximately 31,500 non-core acres in McKenzie County, North Dakota with current net production of approximately 400 BOE/day. The transaction has an effective date of May 1, 2014 and is expected to close in early September. At closing, the purchase price will be adjusted for customary effective date purchase price adjustments.