By OGJ editors
HOUSTON, Jan. 20 – Magnum Hunter Resources Corp., Houston, will acquire NuLoch Resources Inc., Calgary, a Williston basin-focused firm with properties in North Dakota and Saskatchewan, for $327 million.
Both boards approved the transaction. In another pending acquisition, Magnum Hunter plans to acquire NGAS Resources Inc., Lexington, Ky., an Appalachian basin gas producer.
NuLoch owns various ownership interests in 67 wells capable of production and has six rigs drilling new wells in the US and Canada. Nuloch has assembled 71,600 net acres in largely contiguous blocks, with 32,900 net acres in Divide and Burke counties, ND, and 38,700 net acres in southeast Saskatchewan. NuLoch also owns 50,680 net lease acres of producing properties in Alberta.
NuLoch had proved reserves of 5.9 million bbl of oil equivalent and proved and probable reserves of 9.2 million boe at the end of 2010. Production capacity is 1,550 boe/d, 85% crude oil and 69% from the Williston basin. Alberta production is 480 boe/d, 53% light crude.
NuLoch has a multiyear inventory of 267 net identified Williston basin drilling locations, all of which target the Bakken-Three Forks Sanish formations via long-reach horizontal drilling and multistage fracturing techniques.