Resolute Energy Corp. (REN) said Oct. 8 it has closed the sale of its Hilight Field assets in the Powder River Basin to a private party for $55 million.
The Hilight Field assets consist of about 48,000 net acres in Wyoming, 100% HBP, operated by Resolute. The field generated production of 9.9 million cubic feet equivalent (MMcfe/d) in the second quarter of 2015, about 70% of which was gas.
Proceeds of the sale have been used to pay down amounts outstanding under the Denver company's revolving credit facility.
Resolute also said the borrowing base of its revolving credit facility has been set at $165 million as part of its fall redetermination. This reflect the reduction of $15 million from the sold Powder River Basin assets.
With the closing of the Powder River Basin asset sale, the company now has completed nearly $100 million of asset sales in 2015. This will significantly reduce the company's leverage while strengthening its balance sheet, said Nicholas J. Sutton, Resolute's chairman and CEO.
In turn, the company will now be able to turn its "full attention to capitalizing on the opportunities in our high quality asset portfolio," Sutton said in a statement.
Following the Powder River Basin sale the company had about $85 million outstanding under the revolver from the $140 million as of Sept. 30. This gives the company about $80 million of current availability.
In addition, Resolute has launched a limited marketing process for a Midland Basin asset in West Texas.
Petrie Partners LLC was Resolute's financial adviser on the Powder River Basin transaction. The transaction has an effective date of July 1.
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