Stock:
Symbol Lookup
Register | Login
...
History
...
...

Pre Market | Dow Jones | Gold | Newsletters | Learn


Resolute Energy Corporation - REN - To acquire a 32% working interest in oil assets

Monday, December 31, 2012 12:47 PM
Resolute Energy Corporation  (NYSE: REN) announced that it has entered into definitive agreements, and closed an initial transaction, to acquire a 32% working interest in oil assets, including existing production and undeveloped acreage, in the Permian Basin of Texas from private parties for a purchase price of approximately $125 million. In addition, Resolute has acquired, for additional consideration of approximately $5.7 million, the option to buy the balance of working interest in the field and operations from the sellers. The initial transaction closed on December 28, 2012, and was financed with borrowings under the Company’s revolving credit facility. The transaction has an effective date of October 1, 2012, and is subject to customary conditions and post-closing purchase price adjustments. The assets are located in Ector and Midland counties, Texas and cover approximately 4,660 gross (1,500 net) acres. The properties in which Resolute acquired an interest include 67 producing wells, thirteen wells awaiting completion and facilities for gathering, water sourcing and water disposal. The wells produced approximately 1,050 net barrels of oil equivalent (“Boe”) per day in the third quarter of 2012 and had estimated proved reserves of 5.1 million Boe as of October 1, 2012, of which 59% is crude oil and 82% are liquids, and 53% is proved developed. The acreage is largely held by production, and the Company estimates that a one to two rig program running for approximately 12 months would be sufficient to hold all of the acquired leases. The acquired assets comprise approximately 32% of the sellers’ interests in the properties. The remainder of the working interests in the properties can be acquired at the Company’s option for additional consideration of approximately $261 million, under substantially the same terms as the initial transaction, at any time between now and March 18, 2013. The option fee of $5.7 million will be credited toward the purchase price if the option is exercised by Resolute. Growth potential exists from approximately 45 vertical drilling locations targeting the Wolfberry interval and 69 uphole recompletion opportunities. Additional upside exists from the multi-pay, multi-play nature of the area, which is prospective for horizontal development, particularly in the Wolfcamp. About Resolute Energy Corporation  - REN Resolute (REN) is an independent oil and gas company focused on the acquisition, exploration, exploitation and development of oil and gas properties, with a particular emphasis on liquidsfocused, long-lived onshore U.S. opportunities. REN’s producing properties are located in the Paradox Basin in Utah, the Powder River Basin in Wyoming, the Permian Basin in Texas and the Bakken trend of North Dakota. REN also owns exploration and exploitation properties in the Permian Basin of Texas and the Big Horn and Powder River Basins of Wyoming.
PRINT

FREE Options Trading Lessons
I'll show you how to unlock HUGE Gains with Options Trading
Let's make 2015 the year you get RICH!

Latest Headlines

Japan Economics Minister Amari: Recent yen moves reflect dollar's gainJapan Economics Minister Amari: Recent yen moves reflect dollar's gain
TOKYO (Reuters) - Japanese Economics Minister Akira Amari said on Wednesday that recent foreign-exchange movements reflected the dollar`s gain rather than the yen`s fall, but that excessive currency m...
Altice owner Drahi says wasn't ready for Time Warner Cable buyAltice owner Drahi says wasn't ready for Time Warner Cable buy
PARIS (Reuters) - Patrick Drahi, the billionaire owner of European telecoms group Altice <ATCE.AS>, said he put an end to talks to buy Time Warner Cable <TWC.N> because his company was not...
Rush to dollar assets costing Japanese investors dearRush to dollar assets costing Japanese investors dear
TOKYO (Reuters) - Cash-rich Japanese banks are paying almost as much extra to borrow dollars on the currency swaps market as they did when they were fighting for survival two decades ago, due to the...
Greece must stay in euro but work to avoid default: German economic adviserGreece must stay in euro but work to avoid default: German economic adviser
BERLIN (Reuters) - Greece must remain a member of the euro zone but it must stop wasting time and do all it can to avoid defaulting on its debts to the IMF, the head of the panel of economic experts...
G7 finance chiefs meet with growth problem to fixG7 finance chiefs meet with growth problem to fix
DRESDEN, Germany (Reuters) - Little more than a gentlemen`s club in recent years, G7 finance ministers and central bankers have their work cut out this week to revive stuttering global growth and de...

Loading Headlines...
 

Stock Market

Track the stock market today with the latest news and information on all things investing! Watch your stocks perform throughout the day and watch the breaking stock market news.

Feedback | disclaimer | privacy policy

Stock Market News

The Stock Market is ever changing. Keep up on your stock market news.

Stock Market Newsletters

Read up on your favorite stock market newsletters.


Learn the Stock Market

Sharper your stock trading skills with our stock market education section.

Algorithm Based
Trade Signals
arrow
swing trades FREE Swing Trade Ideas Clear, simple swing trades.
small cap swing trades Futures Day Trading System S&P + Crude Oil Signals
Autotrading Autotrade Stocks Try for Free!