HOUSTON, March 30, 2012 /PRNewswire/ -- The energy law firm of Burleson LLP announced today that it represented Wheatland Oil, Inc. in a $340 million transaction to sell assets in the Bakken shale play to Continental Resources, Inc. (NYSE: CLR).
In connection with the transaction, Continental Resources will acquire 37,900 net acres in North Dakota and Montana as well as interests in more than 1,000 gross wells. As of December 2011, the net proved reserves of the wells were estimated at 17 MMBoe (million barrels of oil equivalent) with production of 2.5 MBoepd (thousand barrels of oil equivalent per day).
Burleson's Energy Practice team was led by Gary C. Johnson, a partner in the Houston office. Team members included Philip M. Kinkaid, Kenneth M. Krasny, Allan R. Conge and Stefanie C. Vincent. Johnson noted that " Burleson is pleased to have Wheatland as a client. Facilitating complex resource play transactions is one of the core strengths of our energy deal teams."The purchase price of $340 million is anticipated to result in the issuance of between 3.90 million and 4.25 million shares of Continental Resources' common stock to Wheatland, subject to customary purchase price adjustments. The number of shares will be determined based on a 20 day average of the daily sale prices prior to closing of the transaction, subject to a floor of $80.00 per share and a ceiling of $87.18 per share. If approved, the transaction will conclude with a statutory reorganization of Wheatland under the Internal Revenue Code. At its upcoming 2012 Annual Meeting of Shareholders, Continental Resources will seek the required shareholder vote to approve the transaction, in accordance with the agreement and the rules of the New York Stock Exchange.