Resolute Energy Corp. (NYSE: REN) entered a definitive agreement to sell its interests in the Aneth Field in the Paradox Basin of Southeastern Utah, the company said Sept. 14.
The sale of its EOR assets for $160 million cash and up to $35 million in contingency payments should improve the company’s balance sheet as it transitions into a Delaware Basin pure play E&P, Capital One Securities analyst Richard Tullis said in a Sept. 15 report. Resolute’s subsidiary in the Aneth will be sold to an affiliate of Australia’s Elk Petroleum Ltd. (ASX: ELK).
Elk Petroleum focuses on mature oil fields using EOR methods, including CO2, in plays in the U.S. and Australia. The company’s affiliate will pay an additional $35 million to Resolute if WTI rise above $52.50 to $60 per barrel in the three years after closing.
Capital One valued Resolute’s assets at about $100 million.
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