Resolute Energy Corporation Announces Closing of Sale of Aneth Field
November 06 2017 - 4:32PM
Resolute Energy Corporation (“Resolute” or the “Company”)
(NYSE:REN) announced today the closing of the sale of its Aneth
Field properties located in the Paradox Basin of Southeastern Utah
to an affiliate of Elk Petroleum Limited (ASX:ELK). Under the
terms of the definitive agreement Resolute is receiving cash
consideration of $160 million, adjusted for normal closing purchase
price adjustments, and will receive additional cash consideration
of up to $35 million if oil prices exceed certain levels in the
next three years. The transaction has an effective date of
October 1, 2017. 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 $8.75 million to $210 million.
The Company also announced that, subject to final arrangements,
Mr. 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.
Petrie Partners, LLC and Barclays Capital Inc. acted as
financial advisors to Resolute on the Aneth Field sale transaction.
Arnold & Porter Kaye Scholer LLP acted as legal advisor
to Resolute on the transaction.
Cautionary Statements
This press release includes “forward-looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995.
Forward-looking statements in this press release include matters
that involve known and unknown risks, uncertainties and other
factors that may cause actual results, levels of activity,
performance or achievements to differ materially from results
expressed or implied by this press release. Actual results
may differ materially from those contained in the forward-looking
statements in this press release. Resolute undertakes no
obligation and does not intend to update these forward-looking
statements to reflect events or circumstances occurring after the
date of this press release. You are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. You are encouraged
to review “Cautionary Note Regarding Forward Looking Statements”
and “Item 1A - Risk Factors” and all other disclosures appearing in
the Company’s Form 10-K for the year ended December 31, 2016, and
subsequent filings with the Securities and Exchange Commission for
further information on risks and uncertainties that could affect
the Company’s businesses, financial condition and results of
operations. All forward-looking statements are qualified in
their entirety by this cautionary statement.
About Resolute Energy Corporation
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. For more information, visit www.resoluteenergy.com. The
Company routinely posts important information about the Company
under the Investor Relations section of its website. The Company's
common stock is traded on the NYSE under the ticker symbol
"REN."
Contact:HB JuenglingVice President
- Investor RelationsResolute Energy Corporation303-534-4600,
extension 1555hbjuengling@resoluteenergy.com
Resolute Energy Corp. Comon Stock (NYSE:REN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Resolute Energy Corp. Comon Stock (NYSE:REN)
Historical Stock Chart
From Sep 2023 to Sep 2024