Baytex Energy Corp. (BTE: Quote, BTE.TO) announced that its wholly-owned subsidiary, Baytex Energy USA Ltd., has entered into an agreement to sell its non-operated interests in North Dakota to Bakken Hunter, LLC, a subsidiary of Magnum Hunter Resources Corporation for cash proceeds of US$311 million, subject to closing adjustments.
The Transaction has an effective date of March 1, 2012 and is expected to close in May, 2012.
The company noted that the proceeds from the Transaction may be used to reduce net debt or redeployed into other oil and gas assets. Assuming that all of the proceeds are applied to debt reduction, pro forma total monetary debt as of December 31, 2011 would be approximately C$340 million, which represents a debt-to-funds from operations ratio of 0.6 times.
As a result of the Transaction, the company said that it reduced its 2012 production guidance by 500 boe/d to a range of 53,500 to 54,500 boe/d, from 54,000 to 55,000 boe/d.
The company said that its 2012 exploration and development capital budget remains at C$400 million.
by RTT Staff Writer
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