By Ernest Scheyder
Sept 12 Halcón Resources Corp said on Thursday it would sell leases for oil and natural gas reserves in northern Texas for $303 million.
The sales, expected to close in the fourth quarter, involve three transactions with privately held companies. Halcón did not disclose the buyers.
The land held about 21.2 million barrels of oil equivalent as of last December, most of it crude oil and natural gas liquids. The land currently produces about 4,500 barrels of oil equivalent per day.
The acreage requires injection of water to increase pressure and extract oil, making operations expensive.
"It's just not our ambition to manage that property," Halcón Chief Executive Floyd Wilson said in an interview.
The sale was not a surprise, as Halcón had said for months that it planned to sell off part of its portfolio it considered nonstrategic to focus on growth projects.
BMO Capital Markets and Barclays advised Halcón on the sale.
Shares of Houston-based Halcón fell 1.4 percent to $4.86 in Thursday afternoon trading. The stock is down 30 percent so far this year.