Arnold & Porter Kaye Scholer Represents Resolute Energy Corporation in Sale of Aneth Field to Elk Petroleum Affiliate
Arnold & Porter Kaye Scholer advised Resolute Energy Corporation, an independent oil and gas company, in the sale of its subsidiary Aneth Field to an affiliate of Elk Petroleum Limited for a total potential consideration of $195 million. Resolute will receive cash consideration of $160 million at closing and additional cash consideration of up to $35 million if oil prices exceed certain levels in the next three years.
Resolute will sell Aneth Field in the Paradox Basin of southeastern Utah, as the final step in its strategy towards becoming a pure-play company focused on the Delaware Basin spanning west Texas and southern New Mexico. The transaction will streamline Resolute's cost structure, strengthen its balance sheet and accelerate development of its Delaware Basin properties.
This transaction is expected to close in October 2017 and is subject to customary covenants, closing conditions and purchase price adjustments.