Halcon Resources to buy Williston Basin assets for $1.45 billion

Mon Oct 22, 2012 8:32am EDT

(Reuters) - Oil and gas producer Halcon Resources Corp (HK.N) said it will buy some assets in the Williston Basin in North Dakota from privately held Petro-Hunt LLC and its affiliate for about $1.45 billion, boosting its proved reserves by 58 percent.

Average net production from the assets, comprising about 81,000 net acres, is in excess of 10,500 barrels of oil equivalent per day (boe/d), Halcon said.

The deal will increase Halcon's estimated proved reserves on a pro forma basis to about 115 million barrels of oil equivalent and immediately add to earnings.

Halcon will pay $700 million in cash and $750 million in equity.

The company said the Canada Pension Plan Investment Board (CPPIB) will buy $300 million of its common shares at $7.16 per share, a premium of 1 percent to Halcon's Friday close. The investment represents a 1.4 percent stake in Halcon, according to Thomson Reuters data.

The share purchase is subject to the closing of the Williston Basin asset buy, which is likely in December.

Mitchell Energy Advisors acted as financial adviser to Halcon. Tudor, Pickering, Holt & Co advised CPPIB.

Shares of the company rose 3 percent before the bell on Monday. They closed at $7.07 on Friday on the New York Stock Exchange.

(Reporting by Swetha Gopinath in Bangalore; Editing by Sriraj Kalluvila)