Halcon Resources (NYSE:HK) announced the purchase of additional leasehold in the Williston Basin prospective for the Bakken and Three Forks formations.
Halcon Resources is buying 81,000 net acres for $1.45 billion in total consideration, with $700 million in cash and $750 million in equity. The equity will be preferred stock that will automatically convert into common stock at $7.45 per share after the company authorizes additional common shares and obtains regulatory approval.
Halcon Resources said the acreage is mostly in Mountrail, Williams, McKenzie and Dunn Counties, North Dakota and will boost its lease hold to 135,000 net acres. The properties have proved reserves totaling 42.4 million barrels of oil equivalent (BOE) and current production of 10,500 BOE per day from the Bakken and Three Forks formations,
Halcon Resources also announced an investment from the Canada Pension Plan Investment Board of $300 million of common stock at $7.16 per share.