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.
- 167 wells
- 45,000 net mineral acres
- $35 million
- buyer: Resource Energy Can-Am LLC
- seller: Blue Ridge Mountain Inc, formerly Magnum Hunter Resources
- mostly in Divide County, it appears
- back-of-the-envelope: less than $800 / acre
More from the article, again, which sheds light on a lot of players during the Bakken boom:
Since Resource Energy’s formation in 2015 with backing from Apollo Global Management LLC , 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 County 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.
Obviously there is no comparison between the Permian and Divide County in the Bakken, but considering some are paying upwards of $40,000/acre in the Permian, Bakken acreage for less than $800/acre certainly seems incredible.The deal will also mark Blue Ridge Mountain’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.
To extent possible, I track Bakken operators here.