Halcon Resouces is acquiring Petro-Hunt's Bakkken assets for $1.45 billion ($700 million cash and $750 million in equity). Halcon will receive 10,500 boe/d of production and 81,000 net acres spread across Dunn, McKenzie, Mountrail, and Williams counties in North Dakota. The acreage is less than 40% developed and includes just over 42,000 net acres are located in the Fort Berthold area and just over 38,000 acres are located in the Marmon area.
Proved reserves are estimated 42.4 mmboe, with total resource potential that Halcon believes is more than 100 mmboe. Approximately 88% of reserves and production are crude oil.
After the deal, Petro-Hunt will remain one of the largest acreage holders in the basin, with more than 600,000 acres of leasehold. The company will also retain production of more than 24,000 boe/d.
Bruce Hunt of Petro-Hunt commented:
"We are pleased to become a significant Halcon shareholder through this transaction. The track record of Halcon's management team speaks for itself and we are confident they will do a great job of developing these solid assets.
Halcon's CEO commented:
"This acquisition is immediately accretive on all measures and is consistent with our strategy of building an oil company with a multi-year drilling inventory in liquids-rich basins. The assets we are acquiring are located in what is arguably the most attractive oil producing basin in the lower 48, on a risk adjusted basis..."
Halcon's Williston Basin Assets Expand