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 2014 the year you get RICH!

Latest Headlines

Oman likely to start cutting subsidies next year -ministerOman likely to start cutting subsidies next year -minister
KUWAIT (Reuters) - Oman`s government is likely to start cutting some state subsidies next year as the decline in global oil prices pressures its finances, Minister for Financial Affairs Darwish al-B...
Deutsche Bank lawyer found dead in apparent NY suicide: WSJDeutsche Bank lawyer found dead in apparent NY suicide: WSJ
BERLIN (Reuters) - Calogero Gambino, a senior Deutsche Bank <DBKGn.DE> regulatory lawyer, has been found dead in New York in what appears to have been a suicide, the Wall Street Journal reported...
Areva-Siemens raises claim to $4.4 billion over Finnish reactor delaysAreva-Siemens raises claim to $4.4 billion over Finnish reactor delays
HELSINKI (Reuters) - The French-German consortium Areva-Siemens <AREVA.PA><SIEGn.DE>, the supplier of Finland`s much-delayed Olkiluoto-3 nuclear reactor, has increased its claim against Fi...
India's finance minister favors interest rate cut: paperIndia's finance minister favors interest rate cut: paper
NEW DELHI (Reuters) - India`s Finance Minister Arun Jaitley favors a cut in interest rates to trigger demand in the construction sector, a newspaper report said on Saturday, but the central bank has s...
China's auto market growth may halve to 7 percent this year: industry body headChina's auto market growth may halve to 7 percent this year: industry body head
SHANGHAI (Reuters) - Growth in China`s auto market, the world`s biggest, will halve to 7 percent this year weighed down by a slowing economy, the head of an industry body said on Saturday. "Personal...

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.