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Halcón Resources to divest Williston Basin assets to Bruin E&P for $1.4bn

EBR Staff Writer Published 12 July 2017

Halcón Resources has agreed to divest its operated assets in the Williston Basin in the US to an affiliate of Bruin E&P Partners for $1.4bn in an all-cash deal.

Bruin E&P Partners which is into the exploration and production business is a portfolio company of Arclight Capital Partners.

The assets acquired by Bruin E&P have a current net production of nearly 29,000 boe/d. Halcón's current net production after excluding the assets put up for sale comes to about 7,500 boe/d.

Through the sale, Halcón Resources intends to focus its operations in only the Delaware Basin where it will continue to operate two rigs for the rest of the year. It currently anticipates to end the year with net production of more than 13,000 boe/d.

The sale of the Williston Basin assets follows Halcón’s divestiture of its El Halcón assets in East Texas for $500m in March.

Halcón's chairman, CEO, and president Floyd Wilson said: “The sale of our Williston Basin operated assets transforms Halcón into a single-basin company focused on the Delaware Basin where we have more than 41,000 net acres in Ward and Pecos Counties representing decades of highly economic drilling inventory. 

“The cash proceeds from this transaction and related debt reduction provide us with a strong balance sheet and liquidity to execute our growth plans.”

The Texas-based energy company, Halcón will retain its non-operated assets in the Williston Basin which it may plan to monetize in the future.

Subject to certain conditions, the transaction is expected to be completed by August.

Last month, Halcón Resources announced its initial production results on its first operated well in the Delaware Basin. The CRMWD 79 #1H well recorded production of 1,519boe/d from a 5,167ft lateral.