Hess Sells Bakken Stakes

Hess Corporation (NYSE: HES) has announced that it has entered into an agreement to sell its Little Knife and Murphy Creek acreage interests in the Bakken, in North Dakota, to Enerplus Corporation for a total consideration of $312 million.

The sale consists of approximately 78,700 net acres, which are located in the southernmost portion of Hess’ Bakken position and not connected to Hess Midstream infrastructure, the company highlighted. Net production from the acreage averaged 4,500 barrels of oil equivalent per day net to Hess in the first quarter of this year. The sale is expected to close in May, subject to customary closing conditions.

“The Bakken is a core asset in our company’s portfolio,” John Hess, the chief executive officer of Hess, said in a company statement.

“Sale of the Little Knife and Murphy Creek acreage – the majority of which we were not planning to drill before 2026 – brings material value forward and further strengthens our cash and liquidity position,” he added.

Last month, Hess announced that it had entered into an agreement to sell its subsidiary Hess Denmark ApS to Ineos E&P AS for a total consideration of $150 million. The subsidiary holds a 61.5 percent interest in the South Arne Field, which produced an average of 5,800 barrels of oil equivalent per day net to Hess in the fourth quarter of last year.

In June 2020, Hess announced that it had completed a previously announced sale of its 28 percent working interest in the Shenzi Field in the deepwater Gulf of Mexico to BHP, the field’s operator, for a total consideration of $505 million.

Hess Corporation is a global independent energy company engaged in the exploration and production of crude oil and natural gas. Founded in 1933, the company notes on its website that it has an industry-leading position in the Bakken, is one of the largest producers in the deepwater Gulf of Mexico, and a key natural gas producer and supplier to Peninsular Malaysia and Thailand. The company is also engaged in exploration and appraisal activities offshore Guyana.

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