Bakken Hunter divests Divide County acreage

By The Bakken Magazine Staff | November 12, 2014

Bakken Hunter LLC may have picked a good time to divest certain non-core, nonoperated working interests in Divide County, North Dakota. Bakken Hunter, a wholly-owned subsidiary of Houston-Based Magnum Hunter Resources Corp., has sold $84.7 million worth of assets to an undisclosed independent exploration and production company. The properties in Divide County include 720 barrels of oil equivalent along with 105,661 gross leasehold acres.

During his monthly Director’s Cut, Lynn Helms, director of the North Dakota Oil and Gas Division noted the role decreasing crude prices may play in a handful of the state’s oil producing counties. Divide County, commonly known to produce high water cuts and average initial production rates compared to the core of the Bakken and Three Forks formations, was mentioned by Helms as a county that could be negatively impacted by falling crude prices.

In the announcement on the sale, Magnum Hunter did not mention crude oil prices. The company’s remaining North Dakota assets include 151 gross producing wells constituting 2,577 bopd with an additional 800 bopd increase expected by year’s end. The proceeds of the divestiture have reduced the company’s indebtedness to its growing operations in the Marcellus and Utica Shale plays. “We anticipate the announcement of additional divestitures of non-core assets, which we are currently negotiating, throughout the remainder of the year,” said Gary Evans, company CEO.