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Magnum Hunter unit to buy Bakken assets from Baytex

Bakken Hunter LLC, a subsidiary of Magnum Hunter Resources Corp., closed a $312 million acquisition of Baytex Energy Corp.’s nonoperated interests in North Dakota. Baytex noted that North Dakota remains part of its asset base.

The assets sold represented 45% of Baytex’s North Dakota net acreage and 40% of its current US production. Baytex is based in Calgary.

“There is no change to our plans to drill approximately 20 to 25 gross (approximately 10 net) wells on our Bakken/Three Folks play in North Dakota this year,” Baytex said, adding that it operates almost all of the remaining lands in its US business unit.

Bakken Hunter bought assets that produced 950 boe/d of light oil production based on first-quarter field estimates. The transaction involved 149,700 gross (50,400 net) acres of which 24% is developed, Baytex said.

As of Dec. 31, 2011, the assets were estimated to have proved reserves of 12.4 million boe (8% natural gas) and proved plus probable reserves of 17.9 million boe (8% gas). Baytex said 10% of the proved plus probable reserves are developed and producing.


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