Resolute Energy Corp. announced that the company has signed an amendment to a long-term supply agreement for a key raw material used in the company’s production of oil.
Resolute Energy Corp. has an outstanding agreement with Kinder Morgan to supply carbon dioxide to be used at the company’s properties in the Aneth Field in Utah. The company injects the carbon dioxide into older oil wells that are close to the end of their productive lives in order to stimulate additional production.
Resolute Energy Corp. said that the amendment extends the term of the agreement by four years from the original expiration date of December 31, 2016. The amendment also increased the amount of carbon dioxide that the company is required to purchase under the agreement to 176.5 billion cubic feet.
The amendment reduced the price per thousand cubic feet that Resolute Energy Corporation is required to pay and gave the company more discretion on the timing of the purchases.
The Aneth field was originally discovered in 1956 and is estimated to contain 1.5 billion barrels of original oil in place. Resolute Energy Corporation has a 62% working interest in the field, and estimated proved reserves of 60 million barrels of oil equivalent (BOE).
For more information on the company, go to www.resolutenaturalresources.com
Let us hear your thoughts below: