Halcon Resources Corp Closes Williston Basin Acquisition And Related Financings

Halcon Resources Corp announced that it has closed on the previously announced acquisition of two entities owning producing and undeveloped oil and gas assets in the Williston Basin (Williston Basin Transaction) and related financings. Concurrent with the closing of the Williston Basin Transaction, approximately $726 million of net proceeds from the issuance of senior unsecured notes were released from escrow and applied towards funding the approximate $756 million cash portion of the acquisition. Halcón also issued approximately 10,880 shares of convertible preferred stock to Petro-Hunt Holdings, LLC and an affiliated entity to fund the stock portion of the acquisition. The effective date of the Williston Basin Transaction is June 1, 2012, and as such the final cash and stock consideration paid includes purchase price adjustments. The preferred stock issued to Petro-Hunt Holdings, LLC and an affiliated entity will automatically convert into approximately 108.8 million shares of the Company's common stock following an affirmative shareholder vote with respect to the conversion and an increase in Halcón's authorized common shares to accommodate the conversion. Effective December 6, 2012, and in conjunction with the closing of the Williston Basin Transaction, the borrowing base on the Company's senior secured revolving credit facility was increased from $525 million to $850 million.