Resolute Energy has entered a definitive agreement with undisclosed private sellers to acquire producing and undeveloped oil and gas properties located in Reeves County, Texas, for $160m.
The transaction is subject to customary adjustments and closing conditions and expected to close by 15 May.
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Under the definitive agreement, the acquired 4,600 net acres include 2,187 net acres situated adjacent to the company’s existing operating area (Orla Project Area) and 2,405 net acres in southern Reeves County (Southwest Rim project area).
Resolute CEO Rick Betz 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 US.
“The acreage to be acquired is adjacent to our Appaloosa project area and immediately north of our Mustang project area, and 95% of the acquired acreage will be operated by Resolute.
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By GlobalData“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.”
The Orla Project area acquisition includes interests in two 4,500ft horizontal Wolfcamp wells that currently recover nearly 800 net barrels of oil equivalent per day.
This acquisition also includes six operated drilled but uncompleted Wolfcamp wells (DUCs) and one non-operated 10,000ft lateral Wolfcamp well, which is currently being drilled.
The company estimates that the acreage includes 112 gross (54 net) locations targeting the upper and lower Wolfcamp A and the Wolfcamp B on 80-acre spacing.
The 2,045 net acres, Southwest Rim Project Area acquisition holds development potentiality in the Wolfcamp and other zones.
Resolute Energy is an independent oil and gas company focusing on acquiring and developing unconventional oil and gas properties situated in the Delaware Basin.
