Elk Petroleum Limited (ASX:ELK) entered into a definitive agreement to acquire Resolute Aneth LLC from Resolute Energy Corporation (NYSE:REN) for approximately $200 million on September 15, 2017. Under the terms of the agreement, Resolute will receive cash consideration of $160 million at closing and additional cash consideration of up to $35 million if oil prices exceed certain levels in the next three years. The acquisition is anticipated to be funded via $22 million of equity placement, $98 million of senior debt and $55 million unlisted preferred equity issued by Elk Petroleum, Inc., a wholly-owned subsidiary of Elk.

The transaction is subject to customary covenants, closing conditions and purchase price adjustments. The transaction is expected to close in late October 2017. Proceeds from the transaction will be used by Resolute Energy to repay the outstanding balance under its revolving credit facility.

Petrie Partners, LLC and Barclays Capital Inc. acted as financial advisors to Resolute. Arnold & Porter Kaye Scholer LLP acted as legal advisor to Resolute. Miro Capital Pty Ltd and Odeon Capital Group, LLC acted as financial advisors for Elk.

Barclays Capital Inc. and Petrie Partners, LLC acted as financial advisors to Resolute Energy Corporation. Arnold & Porter Kaye Scholer LLP acted as legal advisor to Resolute Energy Corporation. Norton Rose Fulbright acted as legal advisor to Elk Petroleum Limited.