Magnum Hunter Resources Corp. subsidiary Williston Hunter ND LLC has closed on its acquisition of Eagle Operating Inc.’s assets in the Williston Basin, the company said April 2.
The acquisition includes Eagle’s working interest ownership in 191 wells and some 15,500 gross acres in four counties in North Dakota.
The wells are currently producing around 350 barrels of oil equivalent per day and the leases have total proved reserves of 2.1 million barrels of oil equivalent, according to Houston-based Magnum Hunter.
From 47% to 95% interest
Magnum Hunter previously owned a 47 percent working interest in the properties and now owns a 95 percent working interest. The deal was effective a year ago, on April 1, 2011.
Although the original $57 million agreement included $55 million in cash and $2 million in Magnum Hunter restricted common stock, the companies adjusted the value because of the year-long delay between the announcement of the deal and the closing.
The purchase price was adjusted to around $48.5 million, Magnum Hunter said.
“We are pleased to complete this final agreement and acquire these operated Williston basin properties where we have been a minority owner for a number of years,” Williston Hunter President Glenn Dawson said. “With this additional ‘bolt-on’ transaction, we will be establishing our first operating base in North Dakota, which has been a primary objective as we continue to grow our presence in the Williston basin. We are continuing our engineering evaluation of the properties and plan to implement additional pressure maintenance operations in an effort to enhance secondary oil recovery. A geological study of the properties has positioned the company to prudently begin development of the Bakken/Three Forks Sanish potential associated with the undeveloped leasehold.”
Magnum Hunter and its subsidiaries operate crude, natural gas and natural gas liquids projects in West Virginia, Kentucky, Ohio, Texas, North Dakota and Saskatchewan.
