Resolute Energy Corp. has sold its subsidiary that owns oil and gas operations in the Paradox Basin of southeastern Utah. The properties, known as the Aneth Field, was purchased by Elk Petroleum Ltd. of Australia for an immediate $160 million in cash and potentially $35 million more if oil prices exceed certain levels within the next three years. Resolute Energy is headquartered in Denver.
Resolute said in a release that it sold its Utah operations to raise cash to put it in a better position to focus its oil and gas operations solely in the Delaware Basin of western Texas and southern New Mexico.
“This sale is the final step in our previously announced strategy to transform Resolute into a pure-play Delaware Basin company,” said Resolute CEO Rick Betz. “Closing this transaction will significantly improve our cost structure, strengthen our balance sheet and position the company to accelerate the development of our prolific Delaware Basin property and continue our strong growth profile.”
Elk Petroleum will assume Resolute’s operational assets and workforce in the Aneth oil field, the company said. Elk focuses on the purchase and operation of mature oil fields in the U.S. and Australia.