HOUSTON — Independent energy company Halcon Resources Corp. is buying assets in the Williston Basin in North Dakota from Petro-Hunt LLC in a cash-and-stock deal valued at approximately $1.45 billion.
Its stock gained 20 cents, or 2.8 percent, to $7.27 in premarket trading on Monday.
Chairman and CEO Floyd Wilson said in a statement that the acquisition fits the company's strategy "of building an oil company with a multi-year drilling inventory in several liquids-rich basins."
The assets in the transaction include about 81,000 net acres in North Dakota. Current average net production is more than 10,500 barrels of oil equivalent per day. Total proved reserves are about 42.4 million barrels of oil equivalent. There are currently five operated drilling rigs on the properties.
Halcon's board unanimously approved the acquisition, which is expected to close in December.
The Houston-based company said that the transaction includes $700 million in cash and $750 million in stock. The stock will initially be preferred shares that will automatically convert to common stock at $7.45 per share once Halcon increases its common stock to accommodate the conversion and obtains certain regulatory approvals.
Halcon said it also reached a deal in which the Canada Pension Plan Investment Board will buy $300 million of its stock at $7.16 per share.