Denver-based Resource Energy Can-Am LLC has agreed to pay $34.7 million for Blue Ridge Mountain Resources' assets in Divide County, ND, including interests in 167 wells, over 45,000 net mineral acres, in excess of 1,500 boe/d of flowing production and 3.0 million boe of reserves, the companies said Wednesday.
"The transaction further expands our operating footprint in the Williston Basin and is highly complementary to our existing position in the play," said Resource Energy CEO Paul Favret. "Resource Energy expects to further improve margins and operating efficiencies by reducing LOE [lease operating expenses], transportation costs, and overhead per produced barrel."
It would be Resource Energy's third acquisition in Divide County in the past 18 months. All three purchases were made from recently reorganized companies. Irving, TX-based Blue Ridge Mountain Resources,then known as Magnum Hunter Resources Corp.,emerged from bankruptcy in May 2016. Last November, Resource Energyclosed an agreement to acquire assets in North Dakota and Montana from Chapter 11 bankruptcy reorganized Samson Resources Co. for $75 million. And, in November 2015, Resource Energy closed a deal to acquire the Divide County assets of American Eagle Energy Corp., which declared voluntary Chapter 11 bankruptcy two years ago.
With the acquisition, Resource Energy said it would have accumulated a substantial acreage position in the Williston Basin, proven reserves of about 32 million boe and interests in 385 wells.
The deal would represent a full exit from the Bakken Shale by Blue Ridge.
"This sale of our primarily nonoperated interests in the Bakken strategically aligns Blue Ridge Mountain Resources for focused investment and continued growth in our core acreage within the prolific Utica and Marcellus resource plays," said CEO John Reinhart.
Closing of the transaction, which is subject to customary conditions, is scheduled for next month.
Resource Energy is backed by funds advised by New York City-based Apollo Global Management LLC, a publicly held investment manager.