Houston independent Halcon Resources Corp. has agreed to take $1.4 billion for its Williston Basin properties to focus exclusively on the Permian Basin’s Delaware formation in West Texas.

The agreement, expected to be completed within two months, is with an affiliate of Bruin E&P Partners, a portfolio company of private equity giant Arclight Capital Partners.

The deal would sharply reduce Halcon’s production on the bet that the Permian would give it long-term stability. Current production associated with the Williston properties is 29,000 boe/d net. Proforma for the sale, Halcon output, all from the Delaware sub-basin, would be 7,500 boe/d net.

“The sale of our Williston Basin operated assets transforms Halcon into a single-basin company focused on the Delaware Basin where we have more than 41,000 net acres in Ward and Pecos Counties representing decades of highly economic drilling inventory,” said CEO Floyd Wilson.

Following successful well tests, Halcon last year exercised an option to acquire more than 6,000 net acres in West Texas. In early 2016 it acquired added close to 21,000 net acres for $705 million.

Halcon for now plans to retain its nonoperated Williston properties.

To the end of the year, plans are to run two two rigs in the Delaware, exiting 2017 with estimated output of 13,000 boe/d net-plus.

Last spring the Houston explorer launched a restructuring effort and filed for Chapter 11 bankruptcy protection. Under the agreement, lenders affected by the restructuring plan were to receive shares in the newly reorganized company or other forms of compensation.

The sale to Bruin is conditioned upon receiving consent from more than half of the noteholders of 6.75% unsecured notes due in 2025, which Halcon said it received on Monday.

Halcon shareholders still have to approve of the sale; as of Tuesday, the company said it had commitments to support the sale from more than half.

Some of the sales proceeds would be used to purchase up to half of Halcon’s 6.75% notes and a portion to redeem outstanding 12% second lien notes that are due in 2022.

RBC Richardson Barr advised Halcon on the sale while Intrepid Partners LLC advised on the consent process.