Bakken Shale

Halcon Resources To Purchase More Bakken Properties

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.

Denbury Resources Bails On The Bakken

Denbury Resources (DNR) is abandoning the Bakken play and has agreed to sell its assets here to Exxon Mobil (XOM) for $1.6 billion in cash and Exxon Mobil’s interests in two onshore oil and gas fields.

Denbury Resources said that the Webster Field in Texas and Hartzog Draw Field in Wyoming are suitable candidates for tertiary recovery efforts using carbon dioxide.  The company also intends to purchase an interest in Exxon Mobil’s carbon dioxide reserves in the LaBarge Field in Wyoming.

Denbury Resources reported proved reserves of 96 million barrels of oil equivalent (BOE) in the Bakken at the end of 2011.  These reserves were 84% composed of crude oil and natural gas liquids.   The company reported average production of 15,400 BOE per day from the Bakken in the first six months of 2012.

QEP Resources Adds To Bakken Position In North Dakota

QEP Resources (QEP) has acquired additional acreage in the Williston Basin through an acquisition thus increasing the company’s leverage to the Bakken and Three Forks play.

QEP Resources announced the acquisition of two separate agreements to purchase 27,600 net acres at a cost of $1.38 billion.  This will increase the company’s total exposure to 118,000 net acres.  The oil and gas properties have undeveloped and developed acreage as follows:

• Net production 10,500 barrels of oil equivalent (BOE) per day
• Net proved and probable reserves of 125 million BOE, with 90% composed of crude oil and natural gas liquids.
•  Acreage is in North Dakota (Williams and McKenzie county)

QEP Resources reported that the average estimated ultimate recovery (EUR) is 1.16 million BOE for Bakken wells and 990,000 BOE for Three Forks wells. The company estimates that the acquired acreage has 146 net undeveloped locations that can be developed at a cost of $1.59 billion.  QEP Resources will fund the purchase with cash on hand and its revolving credit facility.

QEP Resources has also adjusted its guidance for 2012 as follows:

• Adjusted EBITDA range increased to $1.4 billion to $1.45 billion, compared to previous range of $1.35 billion to $1.4 billion
• Production increased to a range from 310 to 315 Bcfe (previous 305 to 310 Bcfe)
• Capital spending range increased to $1.5 billion to $1.55 billion (previous $1.45 to $1.50 billion)