Enerplus Corp. has agreed to acquire all shares of Bruin E&P HoldCo LLC for total cash consideration of US$465 million.
With the deal, Enerplus acquires 151,000 net acres in the Williston basin in North Dakota concentrated in the Fort Berthold area, including 30,000 net acres contiguous with Enerplus' tier 1 acreage position. The acquisition includes about 24,000 boe/d day of existing production (72% tight oil, 14% NGL and 14% natural gas), 84 MMboe of proved plus probable reserves, and an inventory of 149 (111 net) drilling locations (including drilled uncompleted wells).
Upon closing, expected in early March, Enerplus estimates it will hold more than a decade of drilling inventory capable of sustaining production at 2021 levels, with additional drilling inventory upside on Bruin's acreage if commodity prices strengthen.
The acquisition will be funded with a new $400 million term loan and a concurrent $115 million bought deal equity financing. Enerplus will not assume any debt of Bruin as part of the acquisition.
Assuming completion of the deal and a 10-month contribution from the Bruin assets to Enerplus' 2021 results, the company expects to deliver 2021 production of 103,500-108,500 boe/d, including 63,000-67,000 b/d of liquids. Capital spending in 2021 is expected to be $335-385 million.
