Resolute Natural Resources Co. and Navajo Nation Oil and Gas Co. (NNOG) have entered into an agreement to acquire some ChevronTexaco Corp. property in the Greater Aneth Field in southeast Utah for an undisclosed amount.
The transaction includes ChevronTexaco’s 70% operated working interest in the Aneth Unit, smaller non-operated interests in the McElmo Creek and Ratherford Units, and interest in the Aneth Gathering System. The deal also includes the operating portion of the Aneth Gas Plant. The Aneth Unit contains 146 active producing wells and 120 active injection wells.
Under a partnership agreement between Resolute and NNOG, Resolute will acquire 75% of the ChevronTexaco assets and NNOG will acquire 25%. Resolute also will assume operations of the Aneth Unit and gathering system from ChevronTexaco. The partnership’s long-term goals include improving recoveries from the field and assisting NNOG to increase its mineral holdings in the area.
Resolute was founded by former executives of HS Resources Inc. and Natural Gas Partners VII LP. HS Resources was sold to Kerr-McGee in 2001 for $1.8 billion. Natural Gas Partners provides private equity to the energy industry. NNOG is owned by the Navajo Nation, with the primary purpose of acquiring ownership and operation of energy resources on Navajo lands.
Closing is expected by the end of the month.
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