Elk Petroleum claims majority of top oil field in US

Company News

by Jessica Amir

Elk Petroleum (ASX:ELK) has completed the purchase of Nasdaq listed, Resolute Energy Corporation, which holds the majority of ownership at the Aneth Oil Field in North America.

It snapped up the company for AUD$205 million plus future contingent consideration.

The oil field is ranked of the top 86th oil field in the US with a 30-year operating history.

It is also one of the 3rd biggest Carbon Dioxide (CO2) Enhanced Oil Recovery (EOR) project in the Rocky Mountains.

The transformation purchase, with 63 per cent ownership of the major asset will deliver significant organic growth potential for ELK.

It offers significant revenue and free cash flow, with consolidated EBITDA of US$50- $55 million and cash flow to equity of $20-$25 million in 2018.

Shares in Elk Petroleum (ASX:ELK) are trading about 13 per cent higher to 7 cents.

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 with a passion for equities and funds management. As Head of News, she has been a broadcast journalist for over seven years, specialising in finance. She has been a journalist with Sky News Business, ABC 1, ABC's The Business and ABC24. She’s also worked as a TV reporter for regional Channel 7 and 9. She also previously worked as a financial planner and real estate agent.