Bruin buys Bakken assets from Halcon for $1.4 billion

By Luke Geiver | July 11, 2017

Money is moving back into the Bakken. Through a transaction valued at $1.4 billion, Bruin Exploration & Production Co. has agreed to acquire Halcon Resources’ operated Williston Basin oil and gas properties. The deal marks the largest transaction in 2017 for the Bakken/Three Forks shale play in North Dakota.

“The Bakken and Three Forks formations represent one of the most attractive value propositions in North American,” said Dan Revers, managing partner for ArcLight, the investment company that backs Bruin. “Core well results in this region now compete with other premier basins thanks to steadily improving completion techniques, but with a significantly more attractive entry price.”

Included in the sale is a production total of roughly 29,000 boe/d. Halcon’s current production is 7,500 b/d. Earlier this year, the company made an entrance into the Delaware Basin where it is currently running two drilling rigs. By the end of the year, Halcon expects to have its two rig program in operation and to be producing in excess of 13,000 boe/d.

Floyd Wilson, chairman and CEO for Halcon, said the proceeds from the sale will be used to pay down debt and to fund its growth plans in the Delaware Basin. The sale also makes the E&P a single-basin operator with all of its efforts focused on the Delaware Basin.

With its Williston Basin acquisition, Bruin will add leasehold acreage in the North Dakota counties of McKenzie, Williams, Mountrail and Dunn—all of which is already held by production.

“We are excited to acquire this highly attractive portfolio from Halcon,” said Matt Steele, CEO of Bruin. “The acquisition provides an opportunity to add significant scale, acreage, inventory and production that is exceptionally complementary to Bruin’s existing asset base.”