Source: Hart Energy
Resource Energy Can-Am LLC continues to build up its position in the Bakken Shale with its third acquisition in Divide County, N.D., the Denver-based company said April 26.
For $34.7 million cash, Resource Energy will acquire interests in producing wells and mineral acreage from Blue Ridge Mountain Inc., formerly known as Magnum Hunter Resources. The deal includes average production of more than 1,500 barrels of oil equivalent per day (boe/d) and 3 MMboe of reserves.
The assets include interests in 167 wells and more than 45,000 net mineral acres and will compliment Resource Energy’s Bakken position, said Paul Favret, Resource Energy president and CEO.
With the acquisition, Resource Energy becomes a major producer and operator in the Williston Basin, which it aims to grow further, Favret said
“We are aggressively growing in the Bakken, and look forward to integrating these assets into our expanding portfolio,” he said in a statement.
Since Resource Energy’s formation in 2015 with backing from Apollo Global Management LLC (NYSE: APO), the company has acquired Williston Basin assets from E&Ps hit by financial troubles, including chapter 11 bankruptcy. Blue Ridge Mountain itself emerged from bankruptcy protection in May 2016.
In November, Resource Energy was the successful stalking horse bidder on Samson Resources Co.’s Bakken assets in North Dakota and Montana in a $75 million deal. A year earlier, Resource Energy purchased bankrupt American Eagle Energy Corp.’s Divide assets for an undisclosed amount.
Pro forma for its recent acquisition, the company’s footprint in the Williston will include proven reserves of about 32 MMboe and interests in 385 wells.
The deal will also mark Blue RidgeMountain’s full exit from the Bakken as the company plans to now focus on its core acreage in Appalachia, said John Reinhart, Blue Ridge Mountain’s president and CEO.
“This sale of our primarily nonoperated interests in the Bakken strategically aligns Blue Ridge Mountain Resources for focused investment and continued growth in our core acreage within the prolific Utica and Marcellus resource plays,” Reinhart said in a statement.
The transaction is scheduled to close in May, subject to the satisfaction of customary closing conditions, according to the companies' release.
Emily Patsy can be reached at epatsy@hartenergy.com.
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