Halcon Resources Corporation (NYSE:HK) shares surged as the company announced the sale of most of its North Dakota operations.
The shale oil producer is selling its Williston Basin operated assets to Bruin E&P Partners LLC for $1.4 billion, a privately held firm. The move is designed to allow Halcon Resources to turn its attention towards the Permian Basin in Texas.
“The sale of our Williston Basin operated assets transforms Halcón into a single-basin company focused on the Delaware Basin where we have more than 41,000 net acres,” CEO Floyd Wilson said in a statement.
The company has been hit hard by the slump of crude oil prices, causing it to file for bankruptcy in 2016 and sell some of its resources in order to focus on its top producers and get back in black.
Halcon Resources’ North Dakota properties produce about 29,000 barrels per day (bpd). The company added that it will sell keep its non-operated interests in wells across the U.S. and possibly sell them in the future.
August is the expected completion of the deal between the two parties. If it falls through, Halcon will be on the hook for $42 million. The shale oil producer has had the North Dakota property since January, which it acquired from several parties for an estimated $1.2 billion.
HK stock skyrocketed 45.9% Tuesday.