Resolute Energy Closes USD 160m Acquisition of Delaware Basin Acreage.
M2 EQUITYBITES-May 17, 2017-Resolute Energy Closes USD 160m Acquisition of Delaware Basin Acreage
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17 May 2017 - Denver, US-based oil and gas company Resolute Energy (NYSE: REN) has closed the acquisition of 4,600 acres of oil and gas properties, plus operating and drilled but uncompleted wells from private sellers for USD 160m, the company said.
The acquisition was financed in substantial part with proceeds received from the previously announced offering of USD 125m of 8.50% senior notes due 2020, which closed on 12 May 2017, thereby preserving significant availability under Resolute's revolving credit facility.
This acquisition includes approximately 4,600 net acres in Reeves County, Texas, interests in two producing operated 4,500 foot horizontal Wolfcamp wells, six operated drilled but uncompleted Wolfcamp wells, and one non-operated 10,000 foot lateral Wolfcamp currently waiting on completion.
Resolute assumed operations on the acquired properties on 1 May 2017, and commenced fracing operations on the first of six drilled but uncompleted wells on 4 May.
The company said the acquisition increases Resolute's Reeves County, Texas holdings by 28% to 21,000 net acres. The acquisition is scheduled to close on May 15, 2017.
Resolute Energy is focussed on the acquisition and development of unconventional oil and gas properties in the Delaware Basin portion of the Permian Basin of west Texas.
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|Publication:||M2 EquityBites (EQB)|
|Date:||May 17, 2017|
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