ChevronTexaco to sell interests in Utah's giant Greater Aneth field

Nov. 12, 2004
A new private independent oil company and the Navajo Tribe signed a definitive agreement to acquire ChevronTexaco Corp.'s interests in Utah's largest oil field in terms of cumulative recovery.

By OGJ editors
HOUSTON, Nov. 12 -- A new private independent oil company and the Navajo Tribe signed a definitive agreement to acquire ChevronTexaco Corp.'s interests in Utah's largest oil field in terms of cumulative recovery.

Consideration in the acquisition of interests in Greater Aneth field in the Paradox basin wasn't announced. The deal is to close by the end of November.

Purchasers are Resolute Natural Resources Co., Denver, formed by managers of the former HS Resources Inc. and equity provider Natural Gas Partners VII LP, and Navajo Nation Oil & Gas Co., Window Rock, Ariz. Kerr-McGee Corp. acquired HS Resources for $1.8 billion in 2001.

Assets to be acquired are a 70% operated working interest in the Aneth Unit, smaller nonoperated interests in the McElmo Creek and Ratherford units, ChevronTexaco's interest in the Aneth gathering system, and the operating portion of the Aneth gas plant, all in San Juan County in the Four Corners area. The Aneth Unit contains 146 active producing wells and 120 active injection wells.

A partnership agreement calls for Resolute to acquire 75% of the assets and NNOG to acquire 25%. Resolute will operate the Aneth Unit and gathering system. The companies said they plan to "work cooperatively with the Navajo Nation and local communities to expedite responsible development of the field.

"The partnership's long term goals include improving recoveries from the field and assisting NNOG to increase its mineral holdings in the area."