Resolute Energy Corporation Announces $160 Million Delaware Basin Acquisition

Resolute Energy Corporation (“Resolute” or the “Company”) (NYSE: REN) today reported that it has entered into a definitive agreement (the “Acquisition Agreement”) with undisclosed private sellers (together, “Sellers”) to acquire producing and undeveloped oil and gas properties in Reeves County, Texas (the “Properties”) for a purchase price of $160 million. The transaction is expected to close on or about May 15, 2017, subject to customary conditions.
As quoted in the press release:

Rick Betz, Resolute’s Chief Executive Officer, said: “This is exactly the kind of targeted, focused, consolidating opportunity that leverages the strengths of our team and our assets. Upon closing, we will have approximately 21,000 net acres in Reeves County, where we have been drilling some of the most successful Wolfcamp wells in the Delaware Basin. This part of the basin is one of the most exciting and economically attractive oil and gas plays in the U.S. The acreage to be acquired is adjacent to our Appaloosa project area and immediately north of our Mustang project area, and 95 percent of the acquired acreage will be operated by Resolute.
“As we complete the drilled but uncompleted wells and look to accelerate development of the combined acreage position with a third rig later this year, we expect that this transaction will add materially to our production beginning in the second half of 2017. As with our Firewheel acquisition in October 2016, this transaction allows us to add acreage, production and opportunity without either the uncertainty associated with acquiring acreage outside of Reeves County or adding significantly to our staffing and infrastructure needs.”

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