Navajo Nation Oil & Gas to Purchase Aneth Field Interests for $100 Million
Resolute Energy Corporation and Navajo Nation Oil and Gas Company will consolidate their interests in the field to strengthen and clarify their strategic relationship
Located in the Paradox Basin of southeastern Utah, Aneth field is the state's largest oil producer, according to the Utah Geological Survey. Most of Aneth Field lies on Navajo Nation land, states REN's website.
REN told the WSJ that Navajo Nation Oil exercised an option to buy 10 percent of the company's current stake in Aneth prior to REN's deal with Denbury Resources Inc., a Plano, Texas-based independent oil and gas company.
REN will acquire Denbury's certain non-operated oil and gas assets in Utah for $75 million, reported Reuters.
NNOG still has the opportunity to option an additional 10 percent of REN's interest in Aneth Field properties with a fixed exercise date of July 2017. The option excludes the stake acquired from Denbury and certain other minority interests, the WSJ reported.
REN and NNOG "will consolidate their interests in the field to strengthen and clarify their strategic relationship," states REN's April 11 announcement.
REN and NNOG acquired the interests on a 50-50 percentage basis, the release states. They were the last major ownership interests in the field not owned by Resolute and Navajo Nation Oil.
"These transactions, taken together, have strong economics for Resolute while presenting NNOG and the Navajo Nation the opportunity to increase their ownership interest in Aneth Field and the tertiary recovery projects that we have undertaken there," Resolute Chairman and Chief Executive Nicholas J. Sutton said in a statement.