Tuesday, July 11, 2017

Halcon Sells All Of It Operated Bakken Assets For $1.4 Billion -- BizJournal -- July 11, 2017


September 27, 2017: Halcon has signed a deal with a private buyer, selling its non-operated assets in the Williston Basin. 

July 12, 2017: Yesterday it was announced that Halcon would exit the Williston Basin; focus on the Permian (see below). Today Zacks reports that shares of US-based upstream company Halcón Resources Corporation (HK) moved up 51.35% to eventually close at $6.75 on Jul 12.

Original Post 
Link here. Data points:
  • seller: Houston-based Halcon (HK)
  • buyer: an affiliate of Houston-based Bruin E&P Partners
  • price: $1.4 billion
  • the deal: includes all of Halcon's operated assets in the Williston Basin
  • why: Halcon to focus on the Delaware Basin (Permian)
  • not included in the deal: Halcon will retain its non-operated Williston Basin assets (but they may sell those assets later -- see update above, September 27, 2017)
  • acreage: 104,000 net acres
  • sweet spot of the Bakken
  • back-of-the-proverbial envelope: $13,500 / acre
Bruin E&P Operating, LLC, is listed at the NDIC Well Search site. Bruin has about 60 file reports, the most "recent," 27888, 7/30/14. Most of their file reports are between 20,000 and 27,888. These are likely the 60 wells they recently acquired from Lime Rock Resources (see below). This, of course, takes us all the way back to Ursa, which can be searched at the blog, if interested.

Bakken operators will be updated.

Folks might remember that Halcon announced a pre-packaged bankruptcy back on May 20, 2016.

Bruin was first mentioned on the blog on January 23, 2017.  At that post:
  • this is the first time I've heard of Bruin E&P Partners in the Williston Basin
  • over at the NDIC home page, well search, they are listed, but it appears to be the 60 new wells they just acquired from Lime Rock Resources
  • webpage
  • private equity commitment  ArcLight Capital
  • primarily interested in assets valued at $50 - $250 million 
  • office address: 602 Sawyer Street, Suite 710, Houston, TX
  • operating locations onshore across the US: 
    • Piceance Basin of Colorado
    • Gulf Coast Texas
    • Permian Basin Texas, New Mexico
    • Arkoma Basin, Arkansas
    • Williston Basin, ND and MT
  • most recently, managed Ursa Resources Group (has been at Bakken operators site for some time)
  • video: time lapse (1:46) of drilling, fracking a well in Eagle Ford

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