CALGARY—Baytex Energy Corp. is selling some of its light oil production for US$311 million to a subsidiary of Magnum Hunter Resources.
The sale represents 40 per cent of the Calgary-based company’s U.S. production.
As a result, Baytex is lowering its 2012 production guidance by the equivalent of 500 barrels per day, to between 53,500 to 54,500 barrels per day.
Magnum Hunter’s subsidiary Bakken Hunter will acquire 950 barrels per day of light oil production in the North Dakota portion of the Bakken formation, which underlies parts of several U.S. states and Canadian provinces.
Baytex said that, assuming all the proceeds are used to reduce debt, it would have about $340 million of debt remaining.