Magnum Hunter Resources Corporation (MHR: Quote) said Wednesday that its wholly-owned subsidiary, Bakken Hunter, LLC, is acquiring certain Williston Basin oil and gas properties from an affiliate of Baytex Energy Corporation (BTE: Quote) for $311 million in cash. The deal is expected to close on or about May 22, 2012, with an effective date of March 1, 2012.
Magnum Hunter, which currently owns a non-operated 10% working interest in the properties to be acquired, will own up to a 47.5% non-operated working interest in the properties, after closing. Samson Resources Company, the operator of the properties, has the option under an existing area of mutual interest provision, to participate in the acquisition.
Upon completion of the deal and assuming Samson does not participate, Magnum Hunter would buy 50,414 net mineral acres located primarily in Divide County, North Dakota, which would expand Magnum Hunter's total Williston Basin position to over 125,000 net acres.
Total proved reserves attributable to the properties being acquired are estimated at 8.6 million BOE and are about 93% oil.
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by RTT Staff Writer
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