Resource Energy adds to Bakken position, makes third acquistion

By Luke Geiver | April 26, 2017

Resource Energy Can-Am LLC has added to its growing position in the Bakken. The Denver-based exploration and production company that first entered the Bakken during the middle of the downturn has announced its third acquisition in Divide County, North Dakota, a portion of the Bakken play that resides on the North Dakota-Canada border.

Through a definitive purchase agreement with Blue Ridge Mountain Resources—formerly Magnum Hunter Resources—Resource Energy will pay $34.7 million in cash for assets that include 167 wells, more than 45,000 net mineral acres, more than 1,500 barrels of oil equivalent per day, and 3 million BOE of reserves. By May, the deal could be complete.

For Blue Ridge Mountain Resources, the sale will mean the end of all Bakken-related operations for the company that went through the Chapter 11 bankruptcy process last year and is now solely focused on the Marcellus and Utica gas plays.

Resource Energy will now hold 32 MMBOE and an interest in 385 wells within North Dakota. The company’s previous acquisitions also involved entities going through financial struggles, including American Eagle Energy Corp. and Samson Resources Co.

“Resource relied on its leading-edge knowledge of Bakken geology, valuation and opportunities in pursuing this acquisition opportunity,” said Paul Favret, president and CEO of Resource Energy. According to Favret, the company intends to improve margins on the new assets by implementing operational efficiency improvements, reducing lease operating expenses, transportation costs and overhead per produced barrel. “We are aggressively growing in the Bakken and look forward to integrating these assets into our expanding portfolio,” he added.

John Reinhart, president and CEO of Blue Ridge Mountain Resources, said the deal was a strategic fit for both companies.