Enerplus to acquire Williston Basin producer Bruin E&P for $465m

Enerplus, a Canadian oil and gas company, has signed an all-cash deal worth $465 million to acquire Bruin E&P HoldCo, a pure play producer in the Williston Basin in North Dakota, US.

The operational areas of Bruin E&P include the Fort Berthold Indian Reservation, and the Bakken Shale and Three Forks formations. The Texas-based oil and gas company is said to have 459 producing wells.

In August 2020, Bruin E&P wrapped up a restructuring process and had come out from Chapter 11 bankruptcy.

Through the deal, Enerplus will add to its portfolio – 151,000 net acres in the Williston Basin, which includes 30,000 net acres contiguous with its tier 1 acreage position.

The acquisition includes nearly 24,000 BOE per day of existing production, 84 MMBOE of proved plus probable reserves, and an inventory of 149 drilling locations.

Enerplus to acquire Williston Basin producer Bruin E&P for $465m – Enerplus Bruin Williston Basin Map. Image courtesy of CNW Group/Enerplus Corporation.

Bruin E&P assets are all situated in North Dakota with considerable production and development inventory contained in the Fort Berthold region near the primary property of Enerplus.

The current production rate of Bruin E&P is nearly 24,000 BOE per day, of which 72% is tight oil, 14% is natural gas liquids (NGLs), while 14% is natural gas.

Ian C. Dundas – President and CEO of Enerplus said: “This acquisition demonstrates our disciplined returns-oriented focus and commitment to value creation for our shareholders.

“With immediately adjacent acreage offering strong operational synergies, Bruin’s assets are highly complementary to our existing tier 1 position in the Bakken and will enable us to accelerate free cash flow growth and further support our focus on providing long term sustainable shareholder returns.”

The acquisition, which is subject to customary closing conditions, is anticipated to be closed in early March 2021.