Halcon Resources Corp. agreed to acquire producing and undeveloped assets in the Williston basin’s Bakken and Three Forks formations in North Dakota from privately held Petro-Hunt LLC for $1.45 billion cash-stock transaction.
The assets involve 81,000 net acres primarily in Williams, Mountrail, McKenzie, and Dunn counties. Halcon’s board unanimously approved the transaction, which remains subject to closing conditions and regulatory clearance. Closing is expected in December.
The assets being acquired produce on average more than 10,500 boe/d net. Third-party reserve engineers have estimated proved reserves at 42.4 million boe, of which 88% is oil. Currently, five operated drilling rigs are running on the properties.
Upon closing, Halcon will hold interest in more than 135,000 net acres in the Williston basin and companywide average net production of 26,500 boe/d.
Floyd C. Wilson, Halcon's chairman and chief executive officer, said, “This transaction improves our leverage profile and will effectively increase our estimated proved reserves on a pro forma basis by over 58% to approximately 115 million boe, 79% of which is liquids.”
Halcon was named Ram Energy Resources until it was bought by Wilson, chief executive of Petrohawk Energy. Wilson also is chairman and president of Halcon.
BHP Billiton Ltd. bought Petrohawk Energy for $12 billion last year. Earlier this year, Halcon bought GeoResources Inc. for nearly $1 billion (OGJ Online, Apr. 25, 2012).