Baytex completes sale of non-operated interests in North Dakota
Baytex Energy Corp. report completion of the previously announced disposition of its non-operated interests in North Dakota to a subsidiary of
Baytex Energy Corp. report completion of the previously announced disposition of its non-operated interests in North Dakota to a subsidiary of Magnum Hunter Resources Corporation for cash proceeds of US$312 million, net of adjustments. The proceeds from the Transaction will be redeployed into other oil and gas assets or used to reduce net debt.
The U.S. Business Unit continues to be an important part of our corporate asset base. Following the Transaction, the average working interest in our remaining North Dakota lands has increased from 39% to 45%, with approximately 130 identified net drilling locations, representing thirteen years of drilling inventory at the current pace of development. Almost all of the remaining lands in our U.S. Business Unit are Baytex-operated. As our 2012 capital budget included minimal investment on the disposed assets, there is no change to our plans to drill approximately 20 to 25 gross (approximately 10 net) wells on our Bakken/Three Forks play in North Dakota during this year.