Magnum Hunter Resources Corporation (MHR) announced the purchase of a Canadian exploration and production company that has significant acreage in the Williston Basin that is prospective for the Bakken formation.
Magnum Hunter Resources will purchase NuLoch Resources, Inc. for $2.50 CAD per share. The deal is valued at $327 million.
NuLoch Resources has acreage under lease in Divide and Burke Counties, North Dakota, and in Alberta and Saskatchewan. The company owns interests in 67 producing wells on its properties.
Magnum Hunter Resources said that NuLoch Resources has current productive capacity of 1,070 barrels of oil equivalent (BOE) per day from 13.6 Bakken wells. The company has an inventory of 267 future locations to drill in the Williston Basin.
Magnum Hunter Resources estimates its risked reserve potential at 31.4 million BOE, and the estimated unrisked reserve potential at 80 million BOE.