DENVER–(BUSINESS WIRE)–Resource Energy Can-Am LLC (“Resource Energy”) announced today that it has purchased assets operated by an undisclosed seller in the Bakken Play in Divide County, North Dakota. Under the terms of the agreement, Resource Energy purchased assets including 19 wells, 750 net BOEPD and proved producing net reserves of 2.2 MMBOE. The transaction closed on May 23, 2019.
This acquisition follows Resource Energy’s previously announced acquisitions of interests from American Eagle Energy Corporation, Samson Resources Company, and Blue Ridge Mountain Resources. This acquisition is Resource Energy’s fifth acquisition in Divide County, marking it as a major producer and operator in the basin.
Paul Favret, CEO and President of Resource Energy, stated, “We are excited to have completed the purchase of these significant assets. Resource relied on its leading-edge knowledge of Bakken geology, valuation and opportunities in pursuing this acquisition. The transaction further expands the company’s operating footprint in the Williston Basin, and is highly complementary to our existing position in the play. Resource Energy expects to further improve margins and operating efficiencies by reducing LOE, transportation costs, and overhead per produced barrel. We are aggressively growing in the Bakken and look forward to integrating these assets into our expanding portfolio.” In 2019, Resource Energy also plans to drill and complete several new wells in its extensive inventory of undrilled locations.
With the acquisition, Resource Energy has accumulated a substantial acreage position in the Williston Basin of over 120,000 net acres, proven reserves of approximately 33 MMBOE (14.2 MMBOE proved-producing), and an interest in 416 wells (205 operated).
About Resource Energy
Resource Energy, led by Paul Favret and his experienced team, is headquartered in Denver, Colorado. The management team has extensive evaluation, acquisition, development and operational expertise with experience in nearly all U.S. unconventional basins. Resource Energy is dedicated to using state of the art evaluation, drilling, and completion technologies while providing financial discipline to optimize cash flows and value generation in a challenging commodity price environment. The Resource Energy team enjoys a long-standing reputation for conducting operations in a cost effective, safe, and reliable manner. Resource Energy is backed by funds advised by Apollo Global Management, LLC (the “Apollo Funds”). The Apollo Funds are a leading global alternative investment manager with offices in New York, Los Angeles, Houston, Chicago, Bethesda, Toronto, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong and Shanghai. The Apollo Funds have assets under management of more than $300 billion as of March 31, 2019 in private equity, credit and real estate funds invested across a core group of nine industries where the Apollo Funds have considerable knowledge and resources.