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Resolute Energy to buy $160m worth oil and gas assets in Delaware Basin

Resolute Energy has agreed to purchase certain producing and undeveloped oil and gas assets from undisclosed private sellers in the Reeves County of Texas, US, for around $160m.

Under the deal, Resolute will acquire about 4,600 net acres in Reeves County, including 2,187 net acres next to its existing operating area in Reeves County and 2,405 net acres in southern Reeves County.

The firm will acquire two operated 4,500ft horizontal Wolfcamp wells in the Orla project area, which are currently producing around 800 net Boe per day.

The deal also includes the acquisition of six operated but uncompleted Wolfcamp wells (DUCs), of which four include lateral lengths of about 4,500ft and two with around 7,500ft laterals.

In addition, Resolute will acquire one non-operated 10,000ft lateral Wolfcamp well that is currently being drilled.

The acquired acreage is expected to support 112 gross or 54 net locations, enabling to target the upper and lower Wolfcamp A and the Wolfcamp B on 80-acre spacing.

Resolute will purchase 2,405 net acres in the Southwest Rim project area, which is expected to have development potential in the Wolfcamp and other zones.

Subject to customary conditions, the deal is expected to complete in the May this year.

Once the deal concludes, Resolute intends to complete all of the DUCs with the plans to start production by mid-July this year.

Currently, the firm is running two rigs in the Delaware Basin, and planning to deploy the third rig in the second half of this year to speed up the development of the Orla acreage position.

Resolute Energy CEO Rick Betz said: “Upon closing, we will have approximately 21,000 net acres in Reeves County, where we have been drilling some of the most successful Wolfcamp wells in the Delaware Basin.”