Resolute Energy has entered into a definitive agreement to acquire oil assets, including existing production and undeveloped acreage, in the Permian Basin of Texas and southeast New Mexico from a private party for a purchase price of approximately $120 million.

The transaction is expected to close on or about Dec. 21, 2012. The company expects to finance the acquisition with debt. The transaction has an effective date of Aug. 1, 2012, and is subject to customary conditions and purchase price adjustments.

The assets are primarily located in Howard County, Texas, and Lea County, New Mexico.

Combined, the acquired properties produced a net 1,418 barrels of oil equivalent per day (boe/d) in the third quarter of 2012 and had estimated proved reserves of 4.1 million Boe, of which 73 percent is crude oil. The Company believes that there may be significant additional resource potential in excess of the reserves currently categorized as proved.

Tags: Resolute Energy