Enerplus signs deal to buy Hess’ assets in Williston Basin, US

Canadian firm Enerplus has agreed to acquire Hess’ assets in the Williston Basin, US, for $312m in cash.

Under the definitive agreement, Hess will sell its non-strategic interests in the Little Knife and Murphy Creek acreage in the Bakken Formation in North Dakota.

The acreage considered for the sale spans nearly 78,700 net acres in Dunn County, and are located adjacent to Enerplus’ core Bakken position.

Hess CEO John Hess said: “The Bakken is a core asset in our company’s portfolio.

“Sale of the Little Knife and Murphy Creek acreage, the majority of which we were not planning to drill before 2026, brings material value forward and further strengthens our cash and liquidity position.”

In the first quarter of this year, the average net production from the acreage for Hess was 4,500 barrels of oil equivalent per day (boed), Hess said.

The deal includes 110 net tier one undrilled locations, with 77% operated, as well as 120 net operated undrilled locations.

Enerplus will extend its development drilling by another two or three years and expects to have nearly ten years of drilling inventory under mid-single digit annual liquids production growth rates upon deal completion.

Enerplus president and CEO Ian Dundas said: “These assets are a strong strategic and operational fit for Enerplus, further extending our high-return Bakken drilling inventory.

“The addition of this tier one resource into our development plan is expected to generate strong financial returns and enhance our free cash flow growth.”

Subject to customary closing conditions, the deal is slated for completion next month.