Resolute Energy to draw down on revolver to partially fund acquisition

By Wendy Van Sickle

Columbus, Ohio, Oct. 5 – Resolute Energy Corp. will draw down on its revolving credit facility to finance a portion of its purchase of oil and gas properties in Reeves County, Texas, for $135 million in cash and stock, according to a press release.

The company will also use proceeds from a private offering of a newly created class of preferred stock to fund the $90 million cash consideration of the acquisition, which is expected to close Friday. The company will also issue 2,114,523 shares of its common stock to the seller, Firewheel Energy, LLC.

The properties being bought consist of 3,293 net acres in the Delaware Basin operating area and include interests in 13 horizontal and 15 vertical wells.

Resolute Energy is a Denver-based oil and gas company.

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