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Current REN Stock Info

Resolute Energy Corp. (ticker: REN) is engaged in the acquisition, development and production of onshore domestic hydrocarbons, principally crude oil. Resolute’s producing assets are the Aneth Field in the Paradox Basin of Utah and Hilight Field in the Powder River Basin of Wyoming, in the Permian Basin of West Texas and in the Bakken trend in the Williston Basin of North Dakota.

Resolute announced its production from the Aneth Field and Permian Basin averaged more than 12.5 MBOEPD in October and November 2013, according to an operations update on December 10, 2013. The company averaged 11.5 MBOEPD across all of its assets in its Q3’13 earnings report. Quarterly production in the Aneth declined due to delayed permitting and the reduction of CO2 injection as a safety measure, resulting in a loss of 165 BOEPD. The wells have since recovered from the scaled-back CO2 injections and returned to previous production levels. The horizontal program in the Permian Basin is ramping up and exceeding company expectations.

Q3’13’s rate of 11.5 MBOEPD, in addition to the permitting and safety measures, was also negatively impacted by the sale of its New Home properties in Texas, which accounted for 900 BOEPD of the approximate 1,600 BOEPD sequential drop in production from Q2’13. REN’s most recent report of company-wide production of 12.5 MBOEPD appears to indicate volumes have fully recovered from the temporary operations issues and the previous sale.

Permian Horizontals Providing Early Returns

REN’s first three horizontal wells in the Permian are complete and producing from the Wolfcamp B formation in the Gardendale project area. Two wells averaged a 24-hour initial production (IP) rate of 823 BOEPD with 549 BOEPD over a 30-day period. The third well was recently brought online and delivered a 24-hour IP rate of roughly 600 BOEPD. Approximately 83% of the reserves from the trio are oil and the lengths range from 4,440’ to 4,612’.

Pages from IR Presentation 12-11-2013-2The company’s first horizontal well in the Powder River Basin is currently averaging 679 BOEPD (90% oil) over the past 30 days. Its peak 24-hour IP rate was 1,134 BOEPD, an increase of 86% over the rate announced (607 BOEPD) in its early production stages. The company has 45,000 acres in the region and all are held by production.

In addition, REN’s first horizontal well in the Delaware Basin has reached total depth and another is in the drilling process. Fracturing on the two wells is expected to commence early 2014.

The company said it is currently running one rig in the Delaware Basin during a conference call following its Q3’13 earnings release. Management said there is a possibility of adding one to two more rigs in the future, but did not definitively state its plans due the preliminary stages of its program.

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.