Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Baytex To Sell Certain Williston Basin Properties To Bakken Hunter For $311 Mln.

RELATED NEWS
Trade BTE now with 

Baytex Energy Corp. (BTE: Quote, BTE.TO) Tuesday said its U.S. subsidiary has agreed to sell the non-operated interests in Williston Basin oil and gas properties in North Dakota to Bakken Hunter LLC, a unit of Magnum Hunter Resources Corp. (MHR: Quote), for $311 million in cash.

Baytex said the sale represents 45 percent of its North Dakota net acreage and about 40 percent of its current U.S. Production. The assets include about 950 barrels of oil equivalent per day (boe/d) of Bakken oil production and 149,700 gross acres of land. As of December 31, 2011, the assets were estimated to have proved reserves of 12.4 million boe.

The deal will reduce Baytex's 2012 production by 500 boe/d. The company now anticipates its production for the year in a range of 53,500 to 54,500 boe/d, down from 54,000 to 55,000 boe/d. Meanwhile, the company's exploration and development capital budget for the year remains at C$400 million.

Baytex will use the proceeds to pay debts or redeploy into other oil and gas assets. The deal is expected to close on or about May 22, 2012.

In a separate statement, Magnum Hunter said the acquisition would increase its total Williston Basin position to over 125,000 net acres.

Magnum Hunter anticipates raising its upstream capital budget program to about $225 million from $150 million, with nearly $50 million in additional capital spending expected for the acquired assets.

Magnum Hunter also said that an additional $50 million will be allocated to Eagle Ford region's capital budget, while Appalachia region's capital spending will be reduced by $25 million.

BTE is currently trading at $49.50, down $0.22 or 0.44% on the NYSE. On the Toronto Stock Exchange, BTE is trading at C$49.08, down C$0.16 or 0.32%.

MHR is currently trading at $5.84, down $0.34 or 5.47%, on a volume of 1.8 million shares.

Register
To receive FREE breaking news email alerts for Baytex Energy and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Consumers spent less in July than in the previous month, a surprise retreat that complicates the prevailing belief that the U.S. economic situation is improving. Along with the unexpected drop in spending, government figures released on Friday showed that incomes rose at a slower pace in July than in the previous month. Meanwhile, data on prices indicated that inflation pressures remain tame. India's economy grew faster-than-expected in the three months to June and at the strongest pace in two years, preliminary figures from the Central Statistics Office revealed Friday. Gross domestic product grew 5.7 percent in the April to June quarter, which exceeded economists' forecast for 5.5 percent expansion. The economy grew 4.6 percent in the previous three months. Eurozone inflation slowed as expected in August on falling energy prices giving room for the central bank to support demand and economic recovery without stoking inflation and help the region to create more jobs. The unemployment rate remained unchanged at an elevated level in July. Nonetheless, it was at the lowest since September 2012.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.