DENVER, Nov. 06, 2017 (GLOBE NEWSWIRE) — 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.