Magnum Hunter Resources Corporation (Magnum Hunter) announced the closing of its previously announced acquisition of certain Bakken/Three Forks Sanish properties located in the Williston Basin of North Dakota from Baytex Energy USA Ltd. (a subsidiary of Baytex Energy Corp.) for $311 million, as adjusted for certain customary adjustments. The acquisition was financed with proceeds from a combination of the Company's recently closed senior notes and common stock offerings.
With this closing, the Williston Basin Division now has an approximate 47.5% working interest in the acquired properties. Samson Resources Company is the current operator of the properties, and pursuant to the Joint Operating Agreement, has the option under an existing area of mutual interest provision, to participate in the acquisition, which it may choose to exercise within a specified period of time subsequent to closing.
Pursuant to the acquisition and assuming Samson does not participate, Magnum Hunter has acquired 50,414 net mineral acres located primarily in Divide County, North Dakota, which expands the Company's total Williston Basin position to over 125,000 net acres. Total proved reserves attributable to the acquired properties are estimated at 8.6 million BOE and are approximately 93% oil. Current net production capacity is 1,295 Bopd, which includes an estimated 350 Bopd that is behind-pipe or waiting to be completed from wells recently drilled on the leasehold acreage.
The 2012 capital budget for the Williston Basin Division has been increased to $170 million. With the significant new drilling anticipated for the remainder of 2012, the current estimated daily production exit rate net to the Company's ownership interest at the end of this year is presently estimated at 6,000 - 7,000 Boe per day.
