QEP Resources pulls back on Williston sale, looks to larger sale

By Luke Geiver | February 21, 2019

Vantage Energy Acquisition Corp. will have to wait to enter the Williston Basin. The blank-check company formed for the purpose of effecting a merger, asset acquisition or similar business move has decided to hold off buying the Williston Basin assets of QEP Resources.

Citing unstable commodity prices necessary to make the deal work, Vantage announced this week it would terminate the pending deal. Vantage first announced it would acquire QEP’s assets in November last year.

The original deal was valued at $1.7 billion and included QEP’s South Antelope and Fort Berthold positions. At the time of the deal announcement, Vantage said the rock quality attained in the deal offered good porosity and hydrocarbon saturation that was all highly predictable across the geology of the entire position. A former executive of Encana was set to led the new Vantage efforts.

QEP is now rethinking its plans to become a pure-play Permian operator.

The company has commenced a strategic review that could result in a merger or sale of the company or its assets. “QEP intends to engage in discussions with a variety of parties that have expressed interest in a potential transaction, including Elliot Management Corp.” the Denver-based operator said.