Houston-based independent Magnum Hunter Resources sold its non-operated working interests in Bakken oil and gas assets to Formation Energy for $23 million in cash Tuesday.
The interests are in non-core properties located in Divide County, North Dakota.
The sale is part of a broader divestment plan that has yielded approximately $125 million in gross proceeds for Magnum Hunter this year.
Proceeds from the sale will be used to reduce debt and fund an expansion of Magnum Hunter’s operations in the Marcellus and Utica shale plays.
Magnum Hunter said it is currently negotiating additional divestments from non-core assets and will announce the deals throughout the rest of the year.
The properties sold to Formation Energy currently account for approximately 170 barrels of oil equivalent of average daily production net to the ownership interest sold to the buyer.
The non-operated interest is in a leasehold that covers approximately 34,600 gross and 2,852 net acres.
The effective date of the transaction was April 1, 2014.
The sale was made through Bakken Hunter, a wholly-owned subsidiary of Magnum Hunter.
New York-based Formation Energy is a privately held company.