Continental Resources Announces Agreements To Purchase Bakken Assets For $650 Million

A big Bakken deal just announced…..and also announced was 3rd quarter profits for Continental Resources dropped significantly. See link below for more info….

OKLAHOMA CITY, Nov. 7, 2012 /PRNewswire/ — Continental Resources, Inc. (NYSE: CLR) announced on Wednesday, Nov. 7 that it has entered into an agreement to acquire certain Bakken producing and undeveloped properties for $650 million. The property includes leasehold of approximately 120,000 net acres, primarily in Divide and Williams counties, North Dakota, and production of approximately 6,500 barrels of oil equivalent per day (Boepd).

Continental is currently the largest leaseholder in the Bakken, with 984,040 net acres as of Sept. 30, 2012. If completed, the proposed acquisition will increase this total to 1.1 million net acres.

In addition, Continental announced it has entered into an agreement to sell its producing crude oil and natural gas properties and supporting assets in its East Region for cash proceeds of $125 million. The East Region primarily includes properties east of the Mississippi River, including the Illinois Basin and the state of Michigan, among other areas. Production from the properties included in the sale agreement averaged approximately 1,100 Boepd for the three month period ended September 30, 2012.

“We are divesting non-core, conventional assets and re-investing the proceeds in an attractive acquisition that further builds our strategic, core position in the Bakken,” said Harold Hamm, chairman and chief executive officer. “Continental operates a large portion of the acreage that we are acquiring, and more than half of it is held by production.”

If the Bakken acreage acquisition is completed as planned, the Company expects additional 2013 drilling capital expenditures will be largely offset by incremental cash flow from the properties.

Both transactions are expected to close prior to Dec. 31, 2012 and remain subject to customary closing conditions and adjustments.

As promised, here’s the link to more info on Q3 earnings for Continental Resources.