CALGARY – Baytex Energy Corp. (TSX:BTE) has agreed to sell some of its light oil production for US$311 million to a subsidiary of Magnum Hunter Resources.
The sale represents 40 per cent of the Calgary-based company’s U.S. production.
As a result, Baytex is lowering its 2012 production guidance by the equivalent of 500 barrels per day, to a range of 53,500 to 54,500 barrels per day.
Magnum Hunter’s subsidiary Bakken Hunter will acquire 950 barrels per day of light oil production in the North Dakota portion of the Bakken formation, which underlies parts of several U.S. states and Canadian provinces.
As of Dec. 31, the assets had about 12.4 million oil-equivalent barrels of proved reserves, of which eight per cent was comprised of natural gas.
Baytex said that, assuming all the proceeds are used to reduce debt, it would have about $340 million of debt remaining.
- How caregiving impacts a generation of Canadians: ‘Unpaid work does not end’
- Thousands of Canada’s rail workers have a strike mandate. What happens now?
- Bird flu: Experts urge more surveillance in Canada — before it’s too late
- Can the Bank of Canada cut rates before the U.S.? What Macklem, economists say
Comments