Resolute Energy Closes Sale of Aneth Field in Southeastern Utah, USA.
M2 EQUITYBITES-November 10, 2017-Resolute Energy Closes Sale of Aneth Field in Southeastern Utah, USA
(C)2017 M2 COMMUNICATIONS http://www.m2.com
10 November 2017 - US-based oil and gas company Resolute Energy Corp. (NYSE: REN) has closed the sale of its Aneth Field properties located in the Paradox Basin of Southeastern Utah to an affiliate of Australia's Elk Petroleum Ltd. (ASX: ELK), the company said.
Under the terms of the definitive agreement Resolute is receiving cash consideration of USD 160m, adjusted for normal closing purchase price adjustments, and will receive additional cash consideration of up to USD 35m if oil prices exceed certain levels in the next three years.
The sale was accomplished through the sale of Resolute's subsidiary which held the interests in Aneth Field, and the sale of certain other Aneth Field associated assets.
This sale completes Resolute's transformation into a pure-play Delaware Basin company.
The net proceeds received will be used to repay amounts currently outstanding under the company's revolving credit facility.
Also, as previously disclosed, in connection with the sale, the borrowing base under such facility has been reduced by USD 8.75m to USD 210m.
The company also announced that, subject to final arrangements, James M. Piccone, the company's president will be joining Elk as the chief executive officer of Elk Petroleum, Inc. and will be resigning from his position as an officer of the company and its subsidiaries as of December 31, 2017.
Resolute is an independent oil and gas company focused on the acquisition and development of unconventional oil and gas properties in the Delaware Basin portion of the Permian Basin of west Texas.
Petrie Partners, LLC and Barclays Capital Inc. acted as financial advisors to Resolute on the Aneth Field sale transaction. Arnold and Porter Kaye Scholer LLP acted as legal advisor to Resolute on the transaction.
((Comments on this story may be sent to email@example.com))