Halcon Resources to acquire 81,000 acres in Williston basin

10/22/2012

Halcon Resources to acquire 81,000 acres in Williston basin

HOUSTON -- Halcon Resources Corp. announced that it has entered into a privately negotiated definitive agreement with Petro-Hunt to acquire producing and undeveloped oil and gas assets in the Williston basin for an aggregate purchase price of approximately $1.45 billion, consisting of $700 million in cash and $750 million in equity.

The Williston basin assets are comprised of approximately 81,000 net acres (~95% operated) prospective for the Bakken and Three Forks formations primarily located in Williams, Mountrail, McKenzie and Dunn Counties, North Dakota. Current average net production from these assets is in excess of 10,500 boepd and total proved reserves, as estimated by third party reserve engineers, are approximately 42.4 MMboe, 88% oil, with an internally estimated resource potential of greater than 100 MMboe. Currently there are five operated drilling rigs running on the properties.

On a pro forma basis for this transaction, the Company has over 135,000 net acres in the Williston basin and company-wide current average net production is approximately 26,500 boepd.

Additionally, Halcon has entered into an agreement pursuant to which Canada Pension Plan Investment Board has agreed to purchase $300 million of the Company's common stock at $7.16 per share, subject to customary closing conditions and the successful closing of the acquisition of the Williston basin assets.

Halcon has secured financing commitments from Wells Fargo, J.P. Morgan, Goldman Sachs and Barclays pursuant to which the borrowing base under the Company's senior secured revolving credit facility will be increased to $850 million and such banks have agreed to provide a $500 million bridge loan commitment.

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