Resolute Energy Corporation has entered into a definitive agreement to sell certain non-core assets in the Midland Basin portion of the Permian Basin in west Texas. The properties will be sold to a private party for a purchase price of approximately $42 million. The proceeds of the sale will be used to reduce debt, initially by reducing amounts outstanding under the Company's revolving credit facility.
The transaction, which is expected to close on or about May 1, 2015, has an effective date of March 1, 2015, and is subject to customary conditions and purchase price adjustments, including for title and environmental defects. The assets consist of operated and non-operated properties primarily located in Howard County, Texas.
Nicholas J. Sutton, Resolute's Chairman and Chief Executive Officer said: 'This transaction represents the first step in our previously announced plan to pursue non-core asset sales to reduce debt and improve our liquidity. We look forward to closing this transaction in the coming weeks, at which time we will provide a more detailed breakdown of the assets sold, and the production and cost impact on Resolute for the calendar year 2015.'