Image courtesy of SM Energy.

Denver-based SM Energy completed its purchase of the Gooseneck assets in North Dakota from Calgary-based Baytex Energy for $325 million in cash Thursday.

The acquisition covered 61,000 net acres in Williams and Divide counties in the Bakken region of North Dakota.

The purchase, announced in July, also includes interests in 126 drilling units. SM Energy will operate 81 of the units.

SM Energy now holds 97,000 net acres in Gooseneck.

According to the North Dakota Department of Mineral Resources, the acquisition makes SM Energy the fourteenth largest Bakken oil producer for operated, non-confidential wells with an average daily output of about 24,000 barrels per day.

SM Energy expects to produce between 53.5 to 54.9 million barrels of oil equivalent in 2014.

The acquisition was funded from borrowings under SM Energy’s existing credit facility.


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