Resolute Energy Enters the Oil-Prone Wolfbone Play in the Delaware Basin of Texas; Completes Drilling of First Well Adds Another Asset with Visible Growth Potential; More than 100 Potential Drilling Locations on 18,400 Gross Acres
DENVER, June 29, 2011 /PRNewswire/ -- Resolute Energy Corporation ("Resolute") (NYSE: REN) today announced that it has acquired, and is operator of, 18,400 gross acres (7,900 net acres) in the oil-prone Wolfbone play in the Delaware Basin of West Texas. The acreage is located in Reeves County, Texas, on the western side of the Permian Basin.
Resolute has drilled its first well in the acquired leasehold to a total depth of 12,250 feet. The Company expects to undertake a multi-stage frac during the third quarter, and expects to spud its second well in early July. Resolute has permitted three additional locations and plans to add a second rig to the drilling program, also in the third quarter.
Nicholas J. Sutton, Resolute's Chairman and CEO, said: "The oil-prone Wolfbone play is an exciting new opportunity for Resolute. As we have discussed in the past, Resolute has planned to further diversify its operations. The Permian Basin generally and the Wolfbone in particular satisfies our requirements for a new area. The Wolfbone is primarily a liquids play, which is an important consideration in our acquisition strategy.
"Our entry into the Permian Basin enhances Resolute's growth potential, provides an attractive complement to our existing asset portfolio and lessens our reliance on any one operating area. We have been able to obtain permits for our initial wells, and have secured rigs and other services and supplies to support our drilling program in the play. This project provides several years of visible growth, with more than 100 gross potential drill sites on 160-acre spacing. The properties are mostly contiguous, creating opportunities to generate operational efficiencies and cost advantages from an ongoing drilling program, in addition to the potential for future bolt-on acquisitions.
"The first of eleven wells planned to be drilled in 2011 has reached total depth and is expected to be completed early in the third quarter. We anticipate that drilling in this well-established, multi-stacked pay oil province will have the potential to add meaningful per-share value."
Forward Looking Statements
This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "poised," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. Such forward looking statements include statements regarding our development and exploration plans and our expectations regarding our future development activities including permitting, drilling and completing wells. Forward-looking statements in this press release include matters that involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the amount, nature and timing of capital expenditures of Resolute, including future development costs; the timing of issuance of permits and rights of way; availability of drilling, completion and production personnel, supplies and equipment; the completion and success of drilling in the Delaware Basin of West Texas; the success of prospect development and property acquisition of Resolute; the success of Resolute in marketing oil and gas; the impact of weather and the occurrence of disasters, such as fires, floods and other events and natural disasters; environmental liabilities; operational problems or uninsured or underinsured losses affecting Resolute's operations or financial results; government regulation and taxation of the oil and gas industry; the success of strategic plans, expectations and objectives for future operations of Resolute. Actual results may differ materially from those contained in the forward-looking statements in this press release. Resolute undertakes no obligation and does not intend to update these forward looking statements to reflect events or circumstances occurring after the date of this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. You are encouraged to review Item 1A. - Risk Factors and all other disclosures appearing in the Company's Form 10-K for the year ended December 31, 2010, the Form 10-Q for the quarter ended March 31, 2011, and subsequent filings with the Securities and Exchange Commission for further information on risks and uncertainties that could affect the Company's businesses, financial condition and results of operations. All forward-looking statements are qualified in their entirety by this cautionary statement.
About Resolute Energy Corporation
Resolute is an independent oil and gas company focused on the acquisition, exploration, exploitation and development of oil and gas properties, with a particular emphasis on liquids-focused, long-lived onshore U.S. opportunities. Resolute's producing properties are located in the Paradox Basin in Utah, the Powder River Basin in Wyoming, the Bakken trend of North Dakota and in Oklahoma. The Company also owns exploration properties in the Delaware Basin of Texas and the Big Horn Basin of Wyoming.
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Resolute Energy Corporation
SOURCE Resolute Energy Corporation