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 is a senior finance journalist and presents the Market Outlook, Market at Midday and Market Wrap. She also presents ASX company news and interviews CEOs. She joined FNN in January 2017 with six years of broadcast journalism experience. She worked as a journalist and producer with Sky News Business, ABC 1, ABC's The Business and ABC24. She also worked in regional Australia for Prime 7 and WIN News as a TV reporter. In her prior life she worked as a financial planner.