Oct 22 Oil and gas producer Halcon Resources
Corp said it will buy some assets in the Williston Basin
in North Dakota from privately held Petro-Hunt LLC and its
affiliate for about $1.45 billion, boosting its proved reserves
by 58 percent.
Average net production from the assets, comprising about
81,000 net acres, is in excess of 10,500 barrels of oil
equivalent per day (boe/d), Halcon said.
The deal will increase Halcon's estimated proved reserves on
a pro forma basis to about 115 million barrels of oil equivalent
and immediately add to earnings.
Halcon will pay $700 million in cash and $750 million in
The company said the Canada Pension Plan Investment Board
(CPPIB) will buy $300 million of its common shares at $7.16 per
share, a premium of 1 percent to Halcon's Friday close. The
investment represents a 1.4 percent stake in Halcon, according
to Thomson Reuters data.
The share purchase is subject to the closing of the
Williston Basin asset buy, which is likely in December.
Mitchell Energy Advisors acted as financial adviser to
Halcon. Tudor, Pickering, Holt & Co advised CPPIB.
Shares of the company rose 3 percent before the bell on
Monday. They closed at $7.07 on Friday on the New York Stock