Baytex Energy Tackles Eagle Ford Debt with Bakken Sale

Calgary-based Baytex Energy, a recent entrant into the Eagle Ford, announced in late June of 2014 that it's selling its Bakken Shale assets in North Dakota to pay down a portion of its Eagle Ford debt. In February, the company added 22,200 net contiguous acres in South Texas through its $2.8 billion acquisition of Aurora Oil & Gas, which closed in June of 2014.

Read more: Baytex Energy - Aurora Deal for Eagle Ford Assets - ~$2.6 Billion

In anticipation of the Eagle Ford transaction, Baytex conducted a contingent resources assessment of its assets. During that process, the company earmarked certain properties for divestiture, including its Bakken assets.

Read more: Baytex Energy May Sell Bakken Assets

Baytex Eagle Ford Debt Primary Reason for Bakken Divestiture

SM Energy will pay Baytex $330.5 million for 61,000 net acres in the Bakken. The transaction is expected to close toward the end of the third quarter with after tax net proceeds from the sale, estimated at $275-million. Company officials say the money will be directly applied against outstanding bank indebtedness.

Read more: SM Energy Grabs 61,000 Bakken Net Acres - $330 Million

Read more at baytexenergy.com